Background:
I recently bought my first ever mac, Mac mini m1, because I have been using iPhone for many years and wanted the smooth integration with photos.Since my photo library will not fit on the internal disk, I bought an external ssd to where I have moved my photo library.
This seems to work as expected, however if I am not mistaken the T2 chip will not encrypt the data on the external ssd. So if the external ssd was stolen, it would be trivial to see all my photos.
I did experiment with Disk utility and enabling encryption on the drive. That causes a pop-up window asking for the password to appear when the computer is rebooted. After a system update, the computer rebooted and it took a few hours before I noticed this and entered the password. Afterwards Photos could no longer load that photo library, the error message (I cannot remember it exactly) was very generic and the error code did not provide much more detail. The library was corrupted somehow.