IBM researcher Craig Gentry has figured out a system that analyzes encrypted data without sacrificing confidentiality.

IBM said the system could be used to identify spam in encrypted e-mail, protect electronic medical records, and let users look at information from search engines without feeling like their privacy was threatened.

Charles Lickel, vice president of IBM Software Research, said that this method “is a bit like enabling a layperson to perform flawless neurosurgery while blindfolded, without later remembering the episode.” He also added that “We believe this breakthrough will enable businesses to make more informed decisions, based on studied analysis, without compromising privacy.”