Refactor middleware for better readability

**Description**
Currently hooks lacks proper encryption support.

**Proposed solution**
Add configurable encryption with sensible defaults.

**Priority**: Low/Medium

Start by locating the middleware and hooks implementation, then trace how configuration is currently loaded and where hooks process data. Check for existing encryption-related behavior or tests before defining the change. Done means hooks support configurable encryption with sensible defaults, with the behavior covered by the repository's relevant tests.

Written by the indexing model from the issue text.