Refactor hooks for better readability

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

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

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

No file, test, or entry point is named; first locate the configuration handling and the code that defines the affected types. Clarify which types and encryption behavior are required, then verify that enable_encryption defaults to false and that the requested production use case is covered by tests.

Written by the indexing model from the issue text.