We were wondering if it was possible to use a hash function instead.
Using the password he provided at the login screen and hash it n times.

Master Password: hash(hash(login_password))

Would this be a good idea if we've used this generated hash as a key for AES?
Would the hashing be secure enough against different kinds of attacks?

The short answer is yes. A better answer is that you want to salt the password before you hash it many times, to keep from having rainbow tables created. Another better answer is that you want to hash many times to slow down password crackers.

As others have mentioned, there are standards that can show you the way. PKCS#5 has a mechanism for this. OpenPGP does, too. They're subtly different, and understanding the differences can help you roll your own.

        Jon

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