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The code decrypts the data at some point (for use, presentation, etc). If the code is crappy, insecure, etc. then the data will be exposed, and the data being encrypted wont help at all...

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Decrypted on the local computer, not the untrusted remote computer as it were.

If the same company makes the software at the local end, there's still code there than can expose the data or the encryption key...

Big assumption there.

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