A database system for encryption and protection of confidential data is provided. The database system includes a data source system receiving confidential data and first associated data. A secure data network interface system is connected to the data source system over an open network, the data network interface system receives the confidential data and the first associated data from the data source system and further comprises a secure data storage system coupled to the data network interface system and isolated from the open network, a data encryption system generating a unique encrypted identifier for the confidential data, and a data association system associating the confidential data with the unique encrypted identifier and storing the confidential data, the first associated data and the unique encrypted identifier in the secure data storage system.