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Most password managers can automatically create strong passwords using a cryptographically secure random password generator, as well as calculating the entropy of the generated password. A good password manager will provide resistance against attacks such as key logging, clipboard logging and various other memory spying techniques. See also
Using a mathematical algorithm to generate a new password based on the previous password (OTPs are effectively a chain and must be used in a predefined order). Using a mathematical algorithm where the new password is based on a challenge (e.g., a random number chosen by the authentication server or transaction details) and/or a counter.
Key vs password. A password is a memorized series of characters including letters, digits, and other special symbols that are used to verify identity. It is often produced by a human user or a password management software to protect personal and sensitive information or generate cryptographic keys.
Random number generation is a process by which, often by means of a random number generator (RNG), a sequence of numbers or symbols that cannot be reasonably predicted better than by random chance is generated. This means that the particular outcome sequence will contain some patterns detectable in hindsight but unpredictable to foresight.
Common PRNG (pseudorandom number generator) — preferably cryptographically secure — in both transmitter and receiver; Transmitter sends 'next' code in sequence; Receiver compares 'next' to its calculated 'next' code. A typical implementation compares within the next 256 codes in case receiver missed some transmitted keypresses.
C. CDMF; Ciphertext stealing; Common Scrambling Algorithm; CryptGenRandom; Crypto++; Cryptographic agility; Cryptographically secure pseudorandom number generator
In cryptography, PBKDF1 and PBKDF2 (Password-Based Key Derivation Function 1 and 2) are key derivation functions with a sliding computational cost, ...
For example you cannot use bcrypt to derive a 512-bit key from a password. At the same time, algorithms like pbkdf2, scrypt, and argon2 are password-based key derivation functions - where the output is then used for the purpose of password hashing rather than just key derivation. Password hashing generally needs to complete < 1000 ms.