Simple (simplistic?) question.

If the data are encrypted when they are collected, stored encrypted, and 
only decrypted by a known set of people with a known set of keys, then is 
it not true that:

a) you are no longer reliant on the operating system or network security at 
all, because, at best, the data can only be removed and replaced with 
substitute data, which seeing that the data contains reasonably unique 
"identifying data" would be very difficult or impossible: in essence, the 
data could only be trashed, not falsified, and more importantly it could 
*not* be stolen

b) you have reduced security to a key management problem (stolen keys, 
borrowed keys, etc.)?

I'm very interested in the answer to this perhaps overly elementary question.

John

P.S. The question ignores the issue of electronic signatures, but that 
question is derivative I would say.

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