Abstract: In this paper we present the design of a new encryption scheme. The scheme we propose is a very exible encryption and authentication primitive. We build this scheme on two relatively new design principles: t-functions and fast pseudo hadamard transforms. We recapitulate the theory behind these principles and analyze their security properties and efficiency. In more detail we propose a streamcipher which outputs a message authentication tag along with theencrypted data stream with only little overhead. Moreover we proposesecurity-speed tradeoffs. Our scheme is faster than other comparablet-function based designs while offering the same security level.