My webapp database handles some user profile data (name, birthday, work and education history, email, facebook id, and also my facebook app secret that would provide any holder access to any facebook profile info allowed by its users)
I'm currently on the process of moving to a new VPS, specifically on the CentOS installation menu where I can select if I want to encrypt my system, and I would like to know if I should protect this data from the hosting company by encrypting the system, or leave the system without any encryption and take a different measure (which one?) or do nothing about it and leave everything in the hands of the VPS hosting company.
If I choose to encrypt the system, will it have a big performance impact or is it something I can do in a virtual environment with shared resources (KVM, 1GB RAM, One 2.40 GHz virtual CPU 64 bit Core) without worrying?
Also, since it's a legal issue it may be a little off topic, but not less important: Is encrypting this data to avoid unwanted offline access the VPS hosting company's responsibility and I'm being paranoid or is it something I must do to comply with the law? (The VPS is in Spain and so am I so I don't expect much feedback on this, but just in case)