How Are Passwords Stored in Databases? (And Why It Matters)

Have you ever wondered what happens to your password after creating an account? If it’s stored in plain text, that’s a recipe for disaster. In the event of a data breach, your password will be exposed instantly. This blog explores how passwords are securely stored in databases, why it matter, and how modern techniques safeguard your sensitive information.


What Happens to Your Password?

When you create an account, your password is not (and should never be) stored as-is in the database. Instead, it undergoes a process called hashing. Hashing transforms your password into a fixed-length string of characters that looks random, ensuring that even the database administrators can’t access your actual password.


What Is Hashing?

Hashing is a one-way cryptographic process that converts your password into an irreversible, unique string. Secure algorithms such as bcrypt, Argon2, and PBKDF2 are designed to protect passwords from brute-force attacks.

Example:

  • Your Password: MySecurePassword123

  • Hashed Version: e2a1ef8c4bb8...


Why Is Hashing Important?

  1. Irreversibility
    Hashing is a one-way function. Even if a hacker obtains the hashed password, they cannot reverse-engineer it to retrieve the original password.

  2. Unique Hashes with Salting
    Salting adds a random string to each password before hashing, ensuring even identical passwords produce different hashes.

  3. Increased Security
    Modern hashing algorithms are computationally intensive, making it extremely time-consuming for hackers to crack even one password.

Comparison of Methods:

Storage TypeExampleSecurity Level
Plain Text123456🚨 Vulnerable
Outdated Hashinge10adc3949ba59...⚠️ Easily cracked
Modern Hashing + Salt$2a$12$GFe7rV...✅ Highly secure

How Passwords Should Be Stored

The process for secure password storage involves:

  1. Generating a unique salt.

  2. Combining the salt with the password.

  3. Hashing the salted password using secure algorithms.

  4. Storing only the hash and the salt in the database.

When you log in, the system re-hashes your input and compares it with the stored hash. If they match, you’re authenticated.


Why Modern Algorithms Matter

Outdated algorithms like MD5 and SHA1 are no longer secure due to advances in computational power. Modern algorithms such as bcrypt, Argon2, and PBKDF2 are designed to resist brute-force and dictionary attacks by incorporating techniques like salting, iterative hashing, and computational complexity.

Key Recommendations:

  • Argon2id: Winner of the 2015 Password Hashing Competition, with customizable memory and time parameters.

  • bcrypt: Ideal for legacy systems, with a minimum work factor of 10.

  • PBKDF2: Often used in compliance-sensitive environments, such as FIPS-140.


The Role of Salting and Peppering

  • Salting ensures no two passwords are hashed identically, even if users have the same password. This makes attacks like rainbow table lookups ineffective.

  • Peppering adds another layer of protection. Unlike salt, the pepper is a secret key stored separately, preventing attackers from leveraging stolen database dumps.


A Real-Life Example

In 2019, a major company was caught storing passwords in plain text. During a breach, millions of passwords were exposed. Had they used proper hashing techniques, the stolen data would have been practically useless to attackers.


Your Role in Staying Safe

While hashing protects passwords at the database level, users must adopt secure practices to complement these defenses:

  • Use strong, unique passwords for each account.

  • Enable two-factor authentication (2FA) to add an extra layer of security.


Conclusion

Password hashing is the backbone of secure authentication systems. By using modern algorithms, salting, and peppering, developers can ensure that user passwords remain secure even in the event of a breach. However, security is a shared responsibility. By following best practices, users can reinforce their defenses against cyber threats.

Make your digital life safer—start by understanding how your passwords are stored!

Check out this resource for more details: https://cheatsheetseries.owasp.org/cheatsheets/Password_Storage_Cheat_Sheet.html .

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