One embodiment of the present invention provides a system for facilitating storage encryption and decryption. During operation, the system receives a first request to encrypt data which is to be stored on a remote device, wherein the first request indicates the data. The system updates a key based on a dynamic key refreshment protocol. The system determines a key label for the updated key. The system encrypts the data based on the updated key, and transmits the encrypted data and the key label to the remote device, thereby facilitating secure encryption and decryption of data on the remote device.