Inno Setup encryption and password from remote

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I am using Inno Setup to create installer for my pyinstaller based project. We wanted the user to enter password to continue with installation. For that we have place "CheckPassword" function to validate password from remote location.

Unfortunately the setup is not encrypted it can easily be extracted using innoextract or 7zip. Is it possible in Inno Setup to encrypt setup and using CheckPassword we verify custom password and return the actual encryption key from remote? or is there similar free software which does the job.

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Inno Setup installer can be encrypted.

See Encryption directive.