A network memory system is disclosed. The network memory system comprises a first appliance configured to encrypt first data, and store the encrypted first data in a first memory device. The first appliance also determines whether the first data is available in a second appliance and transmits a store instruction comprising the first data based on the determination that the first data does not exist in the second appliance. The second appliance is configured to receive the store instruction from the first appliance comprising the first data, encrypt the first data, and store the encrypted first data in a second memory device. The second appliance is further configured to receive a retrieve instruction comprising a location indicator indicating where the encrypted first data is stored, process the retrieve instruction to obtain encrypted response data, and decrypt the encrypted response data.