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Comment: I've implemented something similar (Score 4, Interesting) 90

I've implemented a similar solution for one of my web apps.
It encrypts the data in the client with a password that they provide before it gets sent to the server. The client also decrypts the value when it receives it from the server.
The password is kept in LocalStorage (a feature of HTML5) so that it is never transmitted to the server.
Assuming the client application is not compromised, this is a great way to keep data secret even from the service operator.

Unfortunately, you won't see this scheme implemented in many apps because almost everyone's business model these days is all about scraping your data for use by advertisers.

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