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Password hashing lets an application verify a password without storing the original. It uses a password, a unique salt, and a deliberately costly password-hashing scheme to create a verifier. At sign-in, the application processes the submitted password with the same scheme and parameters, then compares the result with the saved verifier. If an attacker steals the password database, the salt and cost make guessing harder—but they do not make weak passwords impossible to crack.
What a password hash is—and is not
A password hash is a verifier, not encrypted text. Encryption is designed to be reversed with the right key; password hashing is designed to let a system check a candidate password without recovering the original. NIST describes password hashing schemes as taking a password, a salt, and a cost factor as inputs to generate a password hash. NIST SP 800-63B-4
The saved value is therefore not a copy of the password in a different format. When someone signs in, the application derives a value from the submitted password and compares it with the account’s stored verifier. A match is evidence that the candidate is correct; the verifier itself is not decrypted.
How password hashing works
When an account is created
- The application accepts the password and generates a salt for that password.
- It passes the password, salt, and selected cost parameters to a password-hashing scheme.
- It stores the resulting verifier along with the salt and enough algorithm and parameter information to verify the password later and upgrade the verifier when needed.
When the user signs in
- The application retrieves the account’s salt and stored scheme parameters.
- It runs the submitted password through the same scheme using those values.
- It compares the new result with the saved verifier. If they match, the password is accepted; the application has not decrypted the stored value.
The algorithm reference and cost factor matter as much as the derived value: without them, the service may not know how to verify an older account after its password-storage configuration changes. NIST recommends storing a reference to the scheme and its cost factor to support migration. NIST SP 800-63B-4
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What the salt and cost factor do
Salt: a different input for each password
A salt is a non-secret value stored with the verifier. It should be generated for each password and chosen to minimize collisions. NIST requires a salt of at least 32 bits and says the salt and resulting hash are stored for each password. Because accounts with the same password have different salts, their stored results differ; salts also frustrate precomputed lookup tables. The salt does not need to be hidden. NIST SP 800-63B-4
Cost factor: more work for every guess
A cost factor configures how much computation, memory, or both the hashing scheme uses. If a database is copied, an attacker can try password guesses offline. A deliberately costly scheme makes each guess more expensive. NIST states that the purpose is to raise the cost of guessing attacks, and advises increasing cost factors over time as computing performance improves, while keeping verifier performance acceptable. A salt and high cost slow guessing; neither guarantees that a weak or reused password will resist it. NIST SP 800-63B-4
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Which password-hashing algorithm should an application use?
OWASP recommends Argon2id when available. If it is unavailable, its guidance lists scrypt; bcrypt is identified for legacy systems where Argon2 and scrypt are unavailable. OWASP also identifies PBKDF2 for cases that require FIPS-140-validated implementations. The example settings below are OWASP guidance, not universal guarantees or substitutes for measuring the service’s own verification latency and capacity. Check current guidance and maintained library behavior before deployment. OWASP Password Storage Cheat Sheet
| Scheme | When to consider it | OWASP example guidance | Implementation consideration |
|---|---|---|---|
| Argon2id | Preferred when available | At least 19 MiB memory, two iterations, and one degree of parallelism | Measure the configuration in the application environment and tune within current guidance. |
| scrypt | When Argon2id is unavailable | CPU/memory cost parameter 2^17, block size 8, parallelization 1 | Confirm that the maintained library supports the needed parameters. |
| bcrypt | Legacy systems where Argon2 and scrypt are unavailable | Work factor of at least 10 | OWASP notes a common 72-byte input limit; handle the chosen implementation’s limit deliberately. |
| PBKDF2 | Cases requiring FIPS-140-validated implementations | 600,000 or more iterations with HMAC-SHA-256 | Use a validated implementation when compliance requires it. |
These parameters can change as standards, libraries, and hardware evolve. Calibrate verification latency and resource use against expected traffic, follow applicable compliance requirements, and review settings periodically. Do not design a custom password-hashing algorithm. OWASP also cautions against using fast general-purpose hashes such as SHA-256 alone for password storage: their speed makes large numbers of guesses easier to test. OWASP Password Storage Cheat Sheet
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When a pepper adds another defense layer
A pepper is a secret used in a keyed operation alongside password hashing. Unlike a salt, it must not be stored in the password database. NIST says that when this additional key is used, it should be generated by an approved random bit generator and stored separately from the hashes, preferably in a hardware-protected area such as an HSM or TEE. NIST SP 800-63B-4
A pepper can add defense in depth if it is protected and managed properly. It also creates an operational dependency: losing or mishandling the key can affect verification. It is not a substitute for unique salts or a suitable password-hashing scheme.
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Password-storage mistakes to avoid
- Storing passwords in plaintext: A database leak would expose the passwords directly. OWASP says passwords should never be stored in plaintext. OWASP Password Storage Cheat Sheet
- Using a fast hash alone: A general-purpose hash such as SHA-256 is designed to be fast, which helps attackers test guesses quickly. Use a password-hashing scheme designed to make guesses costly.
- Reusing one salt: Generate a salt for each password rather than applying one shared salt to every account.
- Treating the salt as a secret: Store it with the verifier. Protect a pepper separately if the design uses one.
- Leaving cost settings unchanged forever: Review them as computing performance and service capacity change.
- Ignoring library input limits: With bcrypt, account for the common 72-byte limit and ensure the application handles inputs consistently rather than silently truncating them.
What a database leak still means
Hashing limits what a stolen password database immediately reveals: the attacker does not simply read the original passwords from properly stored verifiers. But a copy of the database gives an attacker material for offline guessing, where attempts do not need to go through the legitimate sign-in service. Unique salts prevent straightforward reuse of precomputed results across accounts, and a suitable cost raises the effort per guess. Password strength still matters, and hashing is not a guarantee that every password will remain secret.
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