Is PHP password salt really necessary? - php

I've asked myself this question a dozen of times.
Is a password salt really necessary?
I couldn't find any good literature on the subject.
From a security perspective, do password salts help?
If a database is breached, isn't the salt lost if the password is anyways?
Also, from a brush force perspective, if i ban IP's is there really any reason to store salts?

Yes, you should always use salts. fortunately PHP is pretty clever. From this article:
If you use the default options for the password_hash() function PHP will generate a random salt for each password as it is hashed. The random salt is an additional layer of security which makes it exceptionally hard to crack any passwords. Even if two or more users use the same password each of their hashes will be different.
This gets you away from having to generate a salt and leaves the heavy lifting up to PHP. The verification piece, password_verify(), uses the random salt placed in the hash to be able to test against a given password.
From the docs for password_verify():
Note that password_hash() returns the algorithm, cost and salt as part of the returned hash. Therefore, all information that's needed to verify the hash is included in it. This allows the verify function to verify the hash without needing separate storage for the salt or algorithm information.

You do need to salt because an unsalted hash is too easy to crack (using rainbow tables).
First, unsalted hashes result in more collisions. If two passwords used baseball as their password, cracking one is enough to crack both. If both are salted, so that one becomes baseball#sd7#$j and one is baseballL4&$h1, that doesn't work.
Second, a password like baseball or even *4kB$l!h_' is going to be easy to reverse using rainbow tables if it isn't salted. This is because it's easy to create a rainbow table covering all passwords up to a certain length. If properly salted, though, *4kB$l!h_' might be turned into *4kB$l!h_'H4Sj$8)#80-+2nm:W[oa}u#*4$lNamA{ or something else absurdly long. Generating a rainbow table for that is much, much harder.
With PHP, make your life easier and just use password_hash(). Whatever you do, do not roll your own security algorithms, especially with respect to password storage. You will get burned.
For lots more information, read Why are salted hashes more secure? You may also want to spend some time with OWASP's Password Storage Cheat Sheet and it's PHP Security Cheat Sheet.

it does help against 'rainbow tables', which are precompiled hashes for known passwords. when you salt the password, they are useless, because the hash will be different.

I would like to point out the real purpose of using salts. As explained in another answer, different salts lead to different hashes for identical passwords, but this is not the main purpose.
With using different salts for each password, you prevent building one single rainbow table to get all passwords at once.
As you wrote, the salt is not secret. To get a single password, an attacker could still build a rainbow table using this known salt. The problem is, that (s)he would have to build a second rainbow table for the second password, because it used a different salt. In other words, the first rainbow table cannot be reused to find other passwords.
Building a rainbow table to get only a single password doesn't make sense, it is easier to brute-force until you find a match, calculating the rest of the rainbow table is useless since you cannot reuse it. That's why we say, unique salts prevent rainbow table attacks, because brute-forcing is faster than working with rainbow tables.

Related

What is hacking scenario prevented by salts, need more than just 'bruteforce'? [duplicate]

I'm having some trouble understanding the purpose of a salt to a password. It's my understanding that the primary use is to hamper a rainbow table attack. However, the methods I've seen to implement this don't seem to really make the problem harder.
I've seen many tutorials suggesting that the salt be used as the following:
$hash = md5($salt.$password)
The reasoning being that the hash now maps not to the original password, but a combination of the password and the salt. But say $salt=foo and $password=bar and $hash=3858f62230ac3c915f300c664312c63f. Now somebody with a rainbow table could reverse the hash and come up with the input "foobar". They could then try all combinations of passwords (f, fo, foo, ... oobar, obar, bar, ar, ar). It might take a few more milliseconds to get the password, but not much else.
The other use I've seen is on my linux system. In the /etc/shadow the hashed passwords are actually stored with the salt. For example, a salt of "foo" and password of "bar" would hash to this: $1$foo$te5SBM.7C25fFDu6bIRbX1. If a hacker somehow were able to get his hands on this file, I don't see what purpose the salt serves, since the reverse hash of te5SBM.7C25fFDu6bIRbX is known to contain "foo".
Thanks for any light anybody can shed on this.
EDIT: Thanks for the help. To summarize what I understand, the salt makes the hashed password more complex, thus making it much less likely to exist in a precomputed rainbow table. What I misunderstood before was that I was assuming a rainbow table existed for ALL hashes.
A public salt will not make dictionary attacks harder when cracking a single password. As you've pointed out, the attacker has access to both the hashed password and the salt, so when running the dictionary attack, she can simply use the known salt when attempting to crack the password.
A public salt does two things: makes it more time-consuming to crack a large list of passwords, and makes it infeasible to use a rainbow table.
To understand the first one, imagine a single password file that contains hundreds of usernames and passwords. Without a salt, I could compute "md5(attempt[0])", and then scan through the file to see if that hash shows up anywhere. If salts are present, then I have to compute "md5(salt[a] . attempt[0])", compare against entry A, then "md5(salt[b] . attempt[0])", compare against entry B, etc. Now I have n times as much work to do, where n is the number of usernames and passwords contained in the file.
To understand the second one, you have to understand what a rainbow table is. A rainbow table is a large list of pre-computed hashes for commonly-used passwords. Imagine again the password file without salts. All I have to do is go through each line of the file, pull out the hashed password, and look it up in the rainbow table. I never have to compute a single hash. If the look-up is considerably faster than the hash function (which it probably is), this will considerably speed up cracking the file.
But if the password file is salted, then the rainbow table would have to contain "salt . password" pre-hashed. If the salt is sufficiently random, this is very unlikely. I'll probably have things like "hello" and "foobar" and "qwerty" in my list of commonly-used, pre-hashed passwords (the rainbow table), but I'm not going to have things like "jX95psDZhello" or "LPgB0sdgxfoobar" or "dZVUABJtqwerty" pre-computed. That would make the rainbow table prohibitively large.
So, the salt reduces the attacker back to one-computation-per-row-per-attempt, which, when coupled with a sufficiently long, sufficiently random password, is (generally speaking) uncrackable.
The other answers don't seem to address your misunderstandings of the topic, so here goes:
Two different uses of salt
I've seen many tutorials suggesting that the salt be used as the following:
$hash = md5($salt.$password)
[...]
The other use I've seen is on my linux system. In the /etc/shadow the hashed passwords are actually stored with the salt.
You always have to store the salt with the password, because in order to validate what the user entered against your password database, you have to combine the input with the salt, hash it and compare it to the stored hash.
Security of the hash
Now somebody with a rainbow table could reverse the hash and come up with the input "foobar".
[...]
since the reverse hash of te5SBM.7C25fFDu6bIRbX is known to contain "foo".
It is not possible to reverse the hash as such (in theory, at least). The hash of "foo" and the hash of "saltfoo" have nothing in common. Changing even one bit in the input of a cryptographic hash function should completely change the output.
This means you cannot build a rainbow table with the common passwords and then later "update" it with some salt. You have to take the salt into account from the beginning.
This is the whole reason for why you need a rainbow table in the first place. Because you cannot get to the password from the hash, you precompute all the hashes of the most likely used passwords and then compare your hashes with their hashes.
Quality of the salt
But say $salt=foo
"foo" would be an extremely poor choice of salt. Normally you would use a random value, encoded in ASCII.
Also, each password has it's own salt, different (hopefully) from all other salts on the system. This means, that the attacker has to attack each password individually instead of having the hope that one of the hashes matches one of the values in her database.
The attack
If a hacker somehow were able to get his hands on this file, I don't see what purpose the salt serves,
A rainbow table attack always needs /etc/passwd (or whatever password database is used), or else how would you compare the hashes in the rainbow table to the hashes of the actual passwords?
As for the purpose: let's say the attacker wants to build a rainbow table for 100,000 commonly used english words and typical passwords (think "secret"). Without salt she would have to precompute 100,000 hashes. Even with the traditional UNIX salt of 2 characters (each is one of 64 choices: [a–zA–Z0–9./]) she would have to compute and store 4,096,000,000 hashes... quite an improvement.
The idea with the salt is to make it much harder to guess with brute-force than a normal character-based password. Rainbow tables are often built with a special character set in mind, and don't always include all possible combinations (though they can).
So a good salt value would be a random 128-bit or longer integer. This is what makes rainbow-table attacks fail. By using a different salt value for each stored password, you also ensure that a rainbow table built for one particular salt value (as could be the case if you're a popular system with a single salt value) does not give you access to all passwords at once.
Yet another great question, with many very thoughtful answers -- +1 to SO!
One small point that I haven't seen mentioned explicitly is that, by adding a random salt to each password, you're virtually guaranteeing that two users who happened to choose the same password will produce different hashes.
Why is this important?
Imagine the password database at a large software company in the northwest US. Suppose it contains 30,000 entries, of which 500 have the password bluescreen. Suppose further that a hacker manages to obtain this password, say by reading it in an email from the user to the IT department. If the passwords are unsalted, the hacker can find the hashed value in the database, then simply pattern-match it to gain access to the other 499 accounts.
Salting the passwords ensures that each of the 500 accounts has a unique (salt+password), generating a different hash for each of them, and thereby reducing the breach to a single account. And let's hope, against all probability, that any user naive enough to write a plaintext password in an email message doesn't have access to the undocumented API for the next OS.
I was searching for a good method to apply salts and found this excelent article with sample code:
http://crackstation.net/hashing-security.htm
The author recomends using random salts per user, so that gaining access to a salt won't render the entire list of hashes as easy to crack.
To Store a Password:
Generate a long random salt using a CSPRNG.
Prepend the salt to the password and hash it with a standard
cryptographic hash function such as SHA256.
Save both the salt and the hash in the user's database record.
To Validate a Password :
Retrieve the user's salt and hash from the database.
Prepend the salt to the given password and hash it using the same hash function.
Compare the hash of the given password with the hash from the database. If they
match, the password is correct. Otherwise, the password is incorrect.
The reason a salt can make a rainbow-table attack fail is that for n-bits of salt, the rainbow table has to be 2^n times larger than the table size without the salt.
Your example of using 'foo' as a salt could make the rainbow-table 16 million times larger.
Given Carl's example of a 128-bit salt, this makes the table 2^128 times larger - now that's big - or put another way, how long before someone has portable storage that big?
Most methods of breaking hash based encryption rely on brute force attacks. A rainbow attack is essentially a more efficient dictionary attack, it's designed to use the low cost of digital storage to enable creation of a map of a substantial subset of possible passwords to hashes, and facilitate the reverse mapping. This sort of attack works because many passwords tend to be either fairly short or use one of a few patterns of word based formats.
Such attacks are ineffective in the case where passwords contain many more characters and do not conform to common word based formats. A user with a strong password to start with won't be vulnerable to this style of attack. Unfortunately, many people do not pick good passwords. But there's a compromise, you can improve a user's password by adding random junk to it. So now, instead of "hunter2" their password could become effectively "hunter2908!fld2R75{R7/;508PEzoz^U430", which is a much stronger password. However, because you now have to store this additional password component this reduces the effectiveness of the stronger composite password. As it turns out, there's still a net benefit to such a scheme since now each password, even the weak ones, are no longer vulnerable to the same pre-computed hash / rainbow table. Instead, each password hash entry is vulnerable only to a unique hash table.
Say you have a site which has weak password strength requirements. If you use no password salt at all your hashes are vulnerable to pre-computed hash tables, someone with access to your hashes would thus have access to the passwords for a large percentage of your users (however many used vulnerable passwords, which would be a substantial percentage). If you use a constant password salt then pre-computed hash tables are no longer valuable, so someone would have to spend the time to compute a custom hash table for that salt, they could do so incrementally though, computing tables which cover ever greater permutations of the problem space. The most vulnerable passwords (e.g. simple word based passwords, very short alphanumeric passwords) would be cracked in hours or days, less vulnerable passwords would be cracked after a few weeks or months. As time goes on an attacker would gain access to passwords for an ever growing percentage of your users. If you use a unique salt for every password then it would take days or months to gain access to each one of those vulnerable passwords.
As you can see, when you step up from no salt to a constant salt to a unique salt you impose a several orders of magnitude increase in effort to crack vulnerable passwords at each step. Without a salt the weakest of your users' passwords are trivially accessible, with a constant salt those weak passwords are accessible to a determined attacker, with a unique salt the cost of accessing passwords is raised so high that only the most determined attacker could gain access to a tiny subset of vulnerable passwords, and then only at great expense.
Which is precisely the situation to be in. You can never fully protect users from poor password choice, but you can raise the cost of compromising your users' passwords to a level that makes compromising even one user's password prohibitively expensive.
One purpose of salting is to defeat precomputed hash tables. If someone has a list of millions of pre-computed hashes, they aren't going to be able to look up $1$foo$te5SBM.7C25fFDu6bIRbX1 in their table even though they know the hash and the salt. They'll still have to brute force it.
Another purpose, as Carl S mentions is to make brute forcing a list of hashes more expensive. (give them all different salts)
Both of these objectives are still accomplished even if the salts are public.
As far as I know, the salt is intended to make dictionary attacks harder.
It's a known fact that many people will use common words for passwords instead of seemingly random strings.
So, a hacker could use this to his advantage instead of using just brute force. He will not look for passwords like aaa, aab, aac... but instead use words and common passwords (like lord of the rings names! ;) )
So if my password is Legolas a hacker could try that and guess it with a "few" tries. However if we salt the password and it becomes fooLegolas the hash will be different, so the dictionary attack will be unsuccessful.
Hope that helps!
I assume that you are using PHP --- md5() function, and $ preceded variables --- then, you can try looking this article Shadow Password HOWTO Specially the 11th paragraph.
Also, you are afraid of using message digest algorithms, you can try real cipher algorithms, such as the ones provided by the mcrypt module, or more stronger message digest algorithms, such as the ones that provide the mhash module (sha1, sha256, and others).
I think that stronger message digest algorithm are a must. It's known that MD5 and SHA1 are having collision problems.

Ultimate password salt

So recently I have been doing tons of research on how to secure passwords. I believe I understand the basics of it. As such I am attempting to write my own function to secure a password in php.
But I am somewhat confused when it comes to salting a password. We create a random unique salt and append it to a password and then hash it, and finally store the unhashed salt and hashed password/salt combination together in the database. This increases the search space of the hacker if he obtains access to the database and our hashed passwords.
So this seems like complete overkill of security, but everywhere I see the salt is always appended to the front or back of the password anyways. So looking at a SINGLE user's password this unique salt doesn't affect the search space does it? Although since each user has a unique salt the overall search space of EVERY user is dramatically increased.
Wouldn't it be more secure to create an algorithm that inserts the salt to a predictable, semi-random place in the password such as the length of the username/2? For example here is the steps of my proposed securing function:
Create a random salt
take username length %(mod) password length
insert the salt at the spot determined
hash
Example run:
random salt = 12345
len("imauserwithalongname") % len("mypass") = 2
valueToHash = my12345pass
Now our cracker has no idea where to put the salt without seeing our php/source, which (correct me if I am wrong) is much harder to gain access to than the database.
Also I know security should depend on the security of the key not secrecy of the algorithm, however I see nothing wrong with adding layers based on it, as long as the entire system does not depend on secrecy of the algorithm.
EDIT: Would doing this dramatically increase the search space of a cracker?
And what if we placed the salt in a place that depended on the length of the password, would that not destroy the purpose of using dictionary attacks, even on a per user basis?
Inserting the salt in a different spot doesn't increase the search space. If you are using a random salt for each user, a hacker does not know what each salt is per user anyway. The knowledge of its position in the unhashed string doesn't matter.
Use bcrypt or PBKDF2. Both algorithms enforce a salt and number of cycles. If you're patient enough, PHP 5.5 will just let you do password_hash($password).
As such I am attempting to write my own function to secure a password
in php.
Woah woah, hold it right there.
There's a saying passed down from cryptographers to us mere mortals which has held true for many many years. The saying goes like this:
Do not invent your own crypto.
Say it out loud, then say it again.
I know you're only trying to secure your passwords, but I had to get that out of the way. There are lots and lots of tried and tested methods to do what you want to achieve.
I appreciate you've done some research, but the internet is full of terrible terrible information, so I'm going to point you towards some useful articles.
Check out ircmaxell's security related
blogs.
A nice short list.
Here's some keywords to help you.
Bcrypt
Scrypt (someone please unstrike this when PHP supports it)
Again a very short list.
To address your specific concern. Salts are not needed to be kept private, as you say they are designed to stop attackers precomputing tables of valid password/hash combinations. However if you use a weak hashing algorithm they lose their value very quickly.
Security through obscurity is not as great as it seems. If a hacker gains access to your DB, the odds are quite high that they will also gain access to your filesystem. If they gain access to your source your custom method of storing passwords is a moot point.
In summary, custom algorithm + weak hash = insecure.
Instead you want to use tried and tested key derivation functions / key strengthening algorithms.
These are designed to make the computer work really hard to generate the hash, and makes it very difficult for an attacker to brute force a password.
Bcrypt stores the salt next to the password, and is proven to be very secure. Secure enough in fact that it is currently the recommended way to hash passwords by security experts.
In PHP 5.5 a simple password hashing API has been introduced based on Bcrypt, and for versions under 5.5 there is a password hashing compatibility library that does exactly the same thing.
That should be enough for you.
I personally think you're overdoing it. The most efficient way to salt a hash would be to have a dynamic, record-specif one AND a static one stored in a read-only file on the system. This is a very efficient yet secure way of salting hashes.
I think you misunderstood the purpose of the salt. The salt does not increase the search space for an attacker, after all it is stored plaintext with the hash-value. The purpose of a salt is, that an attacker cannot build one single rainbowtable, and then retrieve all stored passwords.
If you would append the same salt to every password, then the attacker cannot simply use an existing precalculated rainbow-table from the internet, he has to build a new rainbow-table for exactly this salt (existing rainbow-tables will contain passwords like "horse", but not passwords like horse8ze*w398dhek3+qmxno0). Unfortunately this single rainbow-table can then be used to get all passwords.
So we use a unique salt for every password. An attacker would have to build a separate rainbow-table for each password now, but why should he continue with building the table, when he already found a match (?), he cannot reuse the table later for other passwords. In other words, brute-force is faster than building a rainbow-table, so we made rainbow-tables useless.
So the salt should be unique for each password and if possible it should be unpredictable. Those criterias are difficult to fulfill with a deterministic computer, the best you can do is, to use the random source of the operating system to build the salts. Good hash algorithms for passwords like BCrypt and PBKDF2 repeat the hashing to become slow, and combine password and original salt in each iteration. It is not just a concatenation of password + salt.
Your idea about putting the salt somewhere secret does add a secret (where is the salt?), that will work as long as the attacker doesnt know your code. Getting the database (SQL-injection) is indeed easier than gaining access to the code, but the same goal can be achieved much easier with a pepper.
I tried to sum up this in a tutorial, maybe you want to have a look at it.

Improve password hashing with a random salt

I'm starting a website and I'm trying to decide how to encrypt user passwords to store them in a SQL database.
I realize that using a simple md5(password) is very unsecured. I'm considering using a sha512(password.salt), and I have been researching the best way to generate a useful salt.
I read numerous articles stating that a salt should be as random as possible to add entropy to the hash and it looks like a great idea. But:
you need to store the random salt along with your hash
given that an attacker somehow got access to your hashed passwords (and is trying to reverse the hash to plain text), it means he probably dumped your database, then got access to your random salts also
Isn't it obvious that the weird looking value next to the hash in the database is a salt? If the attacker can access the salt along with the hash value, how is that more secure?
Anyone has any expertise in that area? Thanks!
An attacker is "allowed" to know the salt - your security must be designed in a way that even with the knowledge of the salt it is still secure.
What does the salt do ?
Salt aids in defending against brute-force attacks using pre-computed "rainbow-tables".
Salt makes brute-force much more expensive (in time/memory terms) for the attacker.
Calculating such a table is expensive and usually only done when it can be used for more than one attack/password.
IF you use the same salt for all password an attacker could pre-compute such a table and then brute-force your passwords into cleartext...
As long as you generate a new (best cryptogrpahically strong) random salt for every password you want to store the hash of there is no problem.
IF you want to strengthen the security further
You could calculate the hash several times over (hash the hash etc.) - this doesn't cost you much but it makes a brute-force attack / calculating "rainbow-tables" even more expensive... please don't invent yourself - there are proven standard methods to do so, see for example http://en.wikipedia.org/wiki/PBKDF2 and http://www.itnewb.com/tutorial/Encrypting-Passwords-with-PHP-for-Storage-Using-the-RSA-PBKDF2-Standard
NOTE:
Using such a mechanism is these days mandatrory since "CPU time" (usable for attacks like rainbow tables/brute force etc.) is getting more and more widely available (see for example the fact that Amazon's Cloud service is among the top 50 of fastest supercomuters worldwide and can be used by anyone for a comparatively small amount)!
given that an attacker somehow got access to your hashed passwords
(and is trying to reverse the hash to plain text), it means he
probably dumped your database, then got access to your random salts
also
The whole point of salting is to defeat "rainbow tables":
http://en.wikipedia.org/wiki/Rainbow_table
See why a sufficiently long salt defeats any rainbow table under the section "Defense against rainbow tables".
how is that more secure?
It used to be more secure because it forced the attacker to try a, back then, very costly brute-force approach instead of an instant looked in precomputed rainbow tables. If you had a 64 bit salt, the attacker needed to have 2^64 precomputed rainbow tables instead of one... In other words: it made rainbow tables useless.
Note however that modern GPUs can crack billions of passwords per second making it mostly pointless for an attacker to store huge rainbow tables (instead of storing billions of hashes, simply compute them in a few seconds).
Nowadays you want to store your "passwords" using something like PBKDF2 or scrypt.
The strength of your hashed, salted passwords rely on all of the following factors:
The strength of the hashing algorithm
The randomness of the salt
The randomness of the password
Your system is as strong as the weakest of the above.
The questions below are from the sister site Security StackExchange. They discuss hashing, salts, PBKDF2, bcrypt, scrypt, and a few other things.
How to securely hash passwords?
Do any security experts recommend bcrypt for password storage?
There's also some previous discussion from here on StackOverflow as well:
Is BCrypt a good hashing algorithm to use in C#? Where can I find it?
In short answer to you question, a salt is a safeguard that makes it take a long time to recover a password in the event of compromise just as a hash is. If attacking one password, the salt won't make a difference. If trying to use a pre-computed dictionary or test many passwords at the same time, having a different salt for each entry will greatly increase the amount of work needed and generally make generating a suitable rainbow table infeasible.
Here's a good article on cryptography: http://www.javacodegeeks.com/2012/02/introduction-to-strong-cryptography-p1.html
See the section Real World Usage of Hash Algorithms, Scenario 1 for discussion of the salt.
I highly recommend using http://docs.oracle.com/javase/6/docs/api/java/security/SecureRandom.html to generate your salt

Should I store my salt along with my hashed password in the database?

I've been reading a bunch of stuff about security and I'm just now starting to try and play around with the code. I want to use MD5 encryption with a salt. I ran across this nifty PHP script with random salt:
substr(str_shuffle(str_repeat('ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789',5)),0,10);
It randomly generates some characters as salt, but then I was thinking: How would I go about checking logins? Do I remove the salt, or should I store it in the database?
You shouldn't be using MD5 for password hashing. See How can I store my users' passwords safely?
To answer your original question, the salt is stored alongside the HASHED password in the database. The salt is not meant to be secret if the hashed password is discovered. Its purpose is to prevent attackers from using rainbow tables.
Store it in database. Otherwise you can't compare password provided by user with hashed one.
Some even regenerate hash (with new salt) upon each successful login of given user, although commenters below argue this is not the best idea (see comments)
Okay, so salts are used for both one-way hashes and encryption. They make it harder to reverse the encryption or the hash. I think it's easier to draw the point out with hashes, so I'll write from that point of view, but the principles apply to encryption in general.
Imagine that you're saving passwords. One of your users chooses the word "kiwi" as a password. Because storing passwords in plain-text is stupid, you don't want to do that. You want to hash the password.
But, those pesky hackers out there have compiled huge databases of hash look-up tables. (Check this one out!)
So, how do we foil the hackers? By salting the user's input! The salt is a random string (or set of bits, properly) that is cryptographically combined with the user's input to produce a more secure hash.
For example, if the string to be hashed is still "kiwi" and our salt is "5m3d", a simple salt mechanism might concatenate the two into: "kiwi5m3d". The hackers probably have "kiwi" in their database, but probably don't have "kiwi5m3d". A good salting system will probably perform a much more complicated function than this.
So now the hackers need a new look-up database for each possible salt. Using a random salt means that the hacker will have to do a full-on brute force attack, rather than recycling previous computations or using someone else's look-up table.
You could choose a different salt for everything, or the same salt for all the things on your site. A different salt of each entity necessitates a new brute force attack for each entity, but it can make implementation more difficult because each salt must be saved, rather than having one global salt (which, for data which is already somewhat random, e.g. passwords, should be sufficient).
In the case of encryption, look-up tables are still a possibility, but the data to be encrypted is generally varied enough that they're not feasible. So it becomes a game of playing "guess the password". It's easy to guess "kiwi" and hard to guess "kiwi5m3d".
You will have to save the salt somewhere, because it's the only way to "know" what's been hashed or encrypted. In the case of a hashed, you compare the user's original hash against the salted hash of their input. In the case of encryption, you need the salt to decrypt the data.
Where do you go from here?
First, don't use MD5. I gave you a link to an MD5 look-up database above. The function's increasingly considered to be weak. The sha class of algorithms is a better choice.
Second, make sure you choose a good salt. Longer and randomer is better. Computers are kind of bad at generating random data. This site could be one good choice and has a pretty good break-down of how it generates its random numbers.
Third, consider salt algorithms. Simple concatenation should work, but maybe HMAC (something I don't know much about) would be better.
You would have to store it in the database, otherwise you would not have anything to compare it to. The thing to remember with using a salt, is that the complexity can vary and without knowing what the salt is, the likelihood of it being brute forced hack is dramtically decreased.
Example:
$password = "banana";
$salt = "a12dsfg33B1cD2eF3G"; # Can be any assortment of characters
$password = md5($salt.$password);
Then you would just attach the same salt (would have to match to work) and pass the same function to your login script that combines the salt and the supplied password. You would then check that to the value in your database to authenticate the user.
Do not invent your own password-hashing scheme, however nifty it may look. Having a secure system is hard because you cannot really test for security. What you need is the following:
For each password instance, a random salt of sufficient length is created.
The random salt is stored along the hashed value; you will need it to verify the password afterward.
The password hashing process must be (configurably) slow, with many (many) nested invocation of whatever hash function is internally used.
Preferably, the internal hash function should use operations which are efficient on a PC but slow on a parallel architecture (a GPU).
Such a thing exists, it is called bcrypt and you can get it in PHP with the portable PHP password hashing framework.

Static Salt vs Random Salt - Security PHP

Is there any working difference between
$hash=sha1($key.$staticSalt);
and
$hash=sha1($key.$randomSalt);
If i use random salt i need to store the random salt in the database, on the other side if i use a fixed salt then no need to use DB !
And if the code can be hacked to see the salt (static) then the hacker will be able to see the database also with the hash and random salt :D
So does it worth it ?
What if i use a salt like ##kiss~89+.&&^me ?
Random salts have a tremendous benefit. If all accounts in the system use the same salt, an attacker can brute-force calculate hashes for that salt and break into all accounts with just one computational run. If they use different salts per account, brute-force only gets you into one account.
While best practice for password storage dictates that they should be stored in a hashed format with a unique salt, the original question actually raises a reasonably good point: if you store the salt in a different location to the hashes, the impact of those hashes being disclosed is lowered.
1) If the passwords were only hashed, and stored in a database, and the site suffered from SQL Injection then an attacker could "crack" the hashes
2) If the passwords were hashed with a salt, and the both hash and salt were in the database, and the site had SQL Injection then an attacker could "crack" the hashes, but would require more computational effort (as there is no performance boost from pre-computed tables)
3) If the passwords were hashes with a salt, and the salt was stored elsewhere, then SQL Injection would afford an attacker little leverage to ascertain the actual password.
Scenario 1 is obviously weakest, but the difference in security between 2 and 3 is less clear-cut, and depends on the relative probabilities of SQL Injection vs server-side code disclosure (and associated classes of vulnerability).
What do you trust more - your ability to protect against SQL Injection, or the ability of Apache/PHP/Whatever to protect your server-side content.
Things are never simple and I actually think the idea in the OP makes more sense than other answers give credit for.
(You could use both, a salt stored in database and a "key" if you like stored in the web app source, when generating passwords).
A salt is be random by definition; there is no such thing as a 'static salt'. If it is not random, it's not a salt but a key.
The point of the salt is to make sure the attacker has to mount a separate attack for each password he/she wants to crack. In other words, the point of salting a hash is to prevent precomputation attacks (rainbow tables).
The easy solution for getting it right is to use a standard library instead of cutting corners
Always use random salt for each password.
If you don't then the benefit of having the salt is lost. If you use the same salt, then in the case when website gets compromised, the hacker can use same hash table for hacking all the passwords in your userlist. If salt is random, then they have to use different hash table for each user.
I 'm not sure if you are salting correctly -- the purpose of a salt is to foil precomputed dictionary attacks if your database is compromised. Therefore you are using a database to begin with, so what does your "no need to use the DB" comment mean?
If you are not using a random salt, then you don't make it more difficult for the attacker to attack your hashes if they get their hand on the salt. You will be better off using a random salt -- you won't need to keep it hidden for your security to work.
The salt also does not need to be long or unusual. "rK" is a good salt. "1q" is also good. Its purpose is simply to vary the output of the hash function.

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