Final answer:
Hardware encryption offers the advantage of faster processing speeds due to the use of dedicated processors for encryption, providing more efficient data processing than software-based encryption.
Step-by-step explanation:
An advantage of hardware encryption over software encryption is the faster processing speed. Hardware encryption uses dedicated processors integrated with the encryption hardware which are specifically designed for cryptographic operations. This results in much faster data processing compared to software encryption, which relies on the device's general CPU that has to handle multiple tasks simultaneously.
On the contrary, hardware encryption is usually not as easy to update or modify as software encryption, may cost more due to the need for physical components, and might face compatibility issues with different systems or devices. Hence, the correct answer among the given options is Option 1: Faster processing speed.