Privacy and security in centralized vs. decentralized databank systems

This paper explores the questions of whether or not a centralized personal-information databank system presents a greater threat to the privacy and other related rights of the persons on whom data are kept than does a decentralized system that collectively holds the same data, and which databank system can provide better data security. It is concluded that, except possibly in the case of a coup d'état, a properly designed and controlled centralized databank system is a smaller threat to privacy and provides more effective security than a decentralized system.This research was supported by the National Science Foundation Grant No. 29943.