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I intend to use the Embedded version of Firebird on my application server. Is there any way to encrypt and use this database as in Sqlite?
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What is the purpose of this encryption? According to The Firebird FAQ (think which also applies to the built-in version), there is native support for encryption in this database, it is necessary to use some external solution. If your purpose is only to protect "inactive" data (i.e. when your system is shut down) you can encrypt the disk/partition/virtual volume using some software like Truecrypt, and put the database data in it. This does not protect them while the system is active, however (because the volume is mounted, and the data accessible in flat format).
– mgibsonbr
You could encrypt the data in the application layer before storing in the database, but there are some drawbacks (more information in the FAQ), and a central problem: where would you store the key? Because your system needs the key to access the data, so that if an attacker gets access to it he will also have access to the key... There are a few scenarios in which this makes sense, but in general protecting the data correctly is a very difficult task.
– mgibsonbr