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In the first Borderlands, saves were stored locally which people could easily hack and this ruined the online experience for me.

Is this still the case for Borderlands 2, or is it all stored online and "unhackable" by the user?

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    The save is compresses using LZO 2.02 pro, and encrypted using SHA-1. Modding will take a significant amount of time. Willowtree's primary maintainer (the others have long-since stopped working on it, including it's original creator) says that the source is so bad that he doubts he will code anything for BL2 until it has been rewritten from top-down. So I wouldn't expect Willowtree to show up anytime in the near future. Perhaps someone can break the SHA-1 encryption, but perhaps that too will take a long time. Keep in mind all of this is breaking the TOS, and can get you banned by gearbox.
    – user33501
    Sep 24, 2012 at 19:08
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    @jake SHA-1 is a hash function, you can't encrypt anything with it.
    – kotekzot
    Feb 4, 2013 at 17:05

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Save game data does still exist on the local hard drive in your users directory, in Windows for example: %userprofile%\Documents\my games\Borderlands 2\WillowGame\SaveData\.

They are also backed up to the cloud now (just like the first Borderlands added later on after the original release). However, to the best of our knowledge so far, they are not validated any more than BL1 saves were. We haven't hacked into the BL2 save files yet, but I'm sure it will be done again just like in BL1.

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