Here is the text of the NIST sp800-63b Digital Identity Guidelines.

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28 points

Which shouldn’t even matter because passwords are salted and hashed before storing them, so you’re not actually saving anything. At least they better be. If you’re not hashing passwords you’ve got a much bigger problem than low complexity passwords.

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33 points

The place that truncates passwords is probably not the place to look for best practices when it comes to security. :-)

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5 points

Hashing passwords isn’t even best practice at this point, it’s the minimally acceptable standard.

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2 points
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What is the best practice currently?

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1 point
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Sorta. Not really.

Key derivation algorithms are still hashes in most practical ways. Though they’re derived directly from block ciphers in most cases, so you could also say they’re encrypted. Even though people say to hash passwords, not encrypt them.

I find the whole terminology here to be unenlightening. It obscures more than it understands.

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