I would not just default to exfat because it is “newer,” it does have compatibility issues on non-windows systems. The implementations differ wildly.
Veracrypt. Make a file on your disk.
Don’t want a storage file?
Make 2 partitions, put veracrypt portable exe on the first normal storage partition. (fat32 is likely ideal here) Second partition formatted with veracrypt.
You asked a question and someone offered a suggestion you were not looking in the right place. Then you become incredulous at their suggestion and start asking a whole bunch of sarcastic questions implying relevancy.
How about you google you problem and figure it out? No one will help you with that attitude.
You can restrict the size of the ramdisk so you do not end up killing processes. A large amount of ram is not mandatory.
tmpfs is the filesystem you are looking for. You can mount it like any other filesystem in /etc/fstab.
tmpfs /path/to/transcode/dir tmpfs defaults 0 0
I transcode to ramdisk.
If you wanted to go overboard, don’t even make the server accessible publicly. Distribute keys to a Wireguard network that is accessible publicly. Mandate your players obtain keys from you to play.