I just created an application that uses a local database, and here is what I found.
Inside the <app sandbox directory>/Library/Private Documents/Parse there is a file called ParseOfflineStore . This is sqlite database. There are 2 tables inside the table ( ParseObjects and Dependencies ), and pinned objects are stored inside ParseObjects .
To answer your questions:
1) No, it does not use CoreData, but it is sqlite (same db database storage as CoreData).
2) No, it is not encrypted. It is in the clear form stored in the ParseObjects table, in the json column as plain json.
It would be relatively trivial for anyone who can connect iExplorer to an application to download, modify, and download a local database. However, if you have a user who can do this, most likely they can proxy your application with Charles anyway; -)
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