What happens after: "Erase data after ten failed passcode attempts"  ?

What happens after data is erased from the iPhone after ten passcode attempts?
Is it the same thing as Settings->General->Erase all content and settings ?
Does the iPhone essentially becomes a permanent brick, or does the iPhone appear as a fresh device that just awaits reactivating?
Thanks~!

All the user data on your phone is encrypted. When 10 failed attempt occur, the phone just securely erases the encryption key (overwrites it multiple times), then reboots. Without the encryption key present, even though all the data is still there, it cannot be decrypted and read anymore. Its just a load of random bits, and useless. The phone will just go through it's 'factory default' setup and quick format the flash ready to be used again as if it was a completely blank brand-new phone. At no point during any of this process is the system partition (the area that stores ios4) touched, so there is no danger of the phone being "bricked".
And even if the system partition was erased, you could still restore the phone using DFU mode. It's quite difficult to permanently brick an iPhone, you can recover from most problems.

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