An innovative system for transmitting encrypted 1-bit audio over an Ethernet network comprises using an omni-directional micro-electrical-mechanical system acoustic sensor element to provide an analog input signal to a sigma-delta modulator that then creates a pulse density modulated 1-bit data stream, at an audio oversampling rate, to a first input of a first exclusive-or (XOR) logic gate. The second input of the XOR logic gate is simultaneously presented with a first pseudo-random 1-bit data stream, at the same audio oversampling rate, thereby resulting in an encrypted pulse density modulated (PDM) 1-bit data stream at the output of the XOR logic gate. The encrypted PDM 1-bit data stream is clocked into a first-in first-out (FIFO) memory at the audio oversampling rate and is clocked out of the first FIFO memory as Ethernet PDM frame data packages at a predetermined Ethernet PHY transfer rate.