Abstract: A system and method for efficiently creating deduplicated and encrypted data across a plurality of computers allows local encryption and remote storage of deduplicated segments. Large data blocks may be divided into segments of data, and encrypted using a two-step process. A standard hash of the encrypted segment is used as an index into a remote deduplicated database so that only unique data segments are stored, and are stored only in encrypted form. When retrieving data, a data owner uses the stored digest to retrieve the data from the deduplicated database and the stored IV and second key to decrypt the data. Only the data owner has the second key and IV, so the encrypted data segment stored data in the deduplicated database is highly secure from information bleed during the storage process.