You upgraded your server to Oracle Solaris 11 and you imported zpool (pool1) that was created in Solaris 10. You need to create an encrypted ZFS file system in pool1, but first you need to make sure that your server supports ZFS encryption. 

The encrypted file system must have been created in Oracle Solaris11. To encrypt a ZFS file system from a previous version of Solaris, upgrade the zpool and create a new encrypted ZFS file system into the encrypted ZFS file system. 

If you plan to create an encrypted file system in an existing zpool, the zpool must be upgraded to ZFS version 30. 

ZFS encryption is integrated with the ZFS command set and no additional packages need to be installed. 

ZFS encryption requires that the ZFS Dataset Encryption package be installed. 

If you plan to create an encrypted file system in an existing zpool, the pool must be upgraded to ZFS version 21, minimum. 

Encryption is supported at the pool or dataset (file system) level. 

Encryption is supported at the pool level only for every file system in the pool will be encrypted. 

You cannot create an encrypted file system in a zpool that was created prior to oracle Solaris11. Create a new zpool in Solaris11, create an encrypted ZFS file system in the new zpool, and move or copy the data from the existing file system into the new encrypted file system.