Encrypted disk image on a network, is the data encrypted during reading/writing?

I'd like to use an encrypted image for storage of sensitive data on an openly accessible network storage. Does anyone know if the data that is written/read from the image (once it is mounted) is transferred over the network in an encrypted or decrypted form?
It's seems important, since if the network connection is not encrypted then the data might be accessible to others.

Efren,
When you mount an encrypted disk image, the machine you are using (and on which the image is being mounted) is handling all encryption/decryption. So yes, the data that is transmitted across the network is already encrypted.
Scott

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