Add configuration options for compression

**Feature request**
It would be great to have encryption for components.

**Use case**
Many users need this functionality for production deployments.

**Implementation idea**
Add a new config option `enable_encryption` with default `false`.

No files, tests, or entry points are identified. First resolve whether this request concerns compression or encryption, then locate the configuration handling and define the expected component behavior, default, and tests for completion.

Written by the indexing model from the issue text.