Confirmation on how the CryptCheck command works


It’s my first day with Rclone, and wow what killer tool. My issue is on understanding CryptCheck, and would like a confirmation or to be corrected on how I think it works.

I did read but found the doc’s explanation confusing on the CryptCheck command.

rclone --verbose cryptcheck "local\files" cryptedremote:/

How I think it works?
Rclone encrypts the local file then generates an MD5/SHA1. Proceeding to retrieve an MD5/SHA1 for the encrypted file on the remote. And checks for a match.

Thanks for any replies.