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I decided to dig in and take a look, it looks like HA uses SecureTar in order to archive the backups, which uses 128bit encryption when combined with a password (which I advised in video to use). You can check it out here: https://github.com/home-assistant/supervisor/blob/main/supervisor/utils/tar.py
If you want the same functionality but with Nextcloud, you can use my add-on. The only missing stuff is state sensors into home assistant, but I'm currently building an integration to implement this. https://github.com/Sebclem/hassio-nextcloud-backup
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