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This paper presents a block cipher based on private key to be implemented in bit-level. The scheme used in the proposed cipher is substitution based. Encryption through this proposed cipher also results in possible lossless compression. Efficiencies of the proposed cipher are observed and compared with the existing cipher IDEA on execution time, rate of compression achieved and chi-square value. Graphically frequency-distribution of characters in source and corresponding encrypted file are observed for a sample file. On the basis of all observations made, proposed cipher is found to be efficient. Requirements of key space of least 166-bit makes it invulnerable to attacks. It is highly compatible with existing cipher like IDEA.
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