Hi,
> Do the same thing as at present, in that the client sends the password hashed 
> and not in cleartext.
>
> The server takes that hashed value and the user name, hashes again (perhaps 
> with a different algorithm) and compares to what it has stored.  Neither the 
> original password (stored in the local machine or entered by the user) nor 
> the value sent on the wire (first hash) are stored in the server.
>   
Cryptographically this is equivalent to sending a cleartext password 
over HTTP and storing a hash of the password.

C: username, password --> S
S: compute H(salt, username, password) and compare against stored hash

What you are proposing is to substitute password = H(password) in the 
above protocol.  If you can sniff the interaction then you will recover 
H(password), which is sufficient for you to log in to the server.  The 
only thing this change buys you is that the attacker would need a 
modified client (so that he can enter H(password) directly, instead of 
entering password).

The existing (now "old") fossil protocol secures the wire interaction 
against compromise.  It is generally believed that it is easier to sniff 
HTTP traffic than the compromise a server and retrieve a file with 
passwords.

Also, unless I am misunderstanding drh's followup message, the "new" 
fossil protocol is similarly no more secure that the old protocol, just 
very slightly more irritating for an attacker.  Instead of the client 
and server sharing the secret cleartext password p, they share the 
secret hash H(p).  If you can compromise the server then you know the 
shared secret H(p), and can use it with a small modification to the client.

The only way to solve this problem - securing both the wire and the 
server storage - is to move to a more advanced cryptographic protocol 
(preferably asymmetric crypto).  That is not workable however, as it 
would leave no way to log on through the web interface (which is limited 
to the mechanisms reasonably supported by browsers).  Fossil is not 
alone in this dilemma.

Regards,
Twylite

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