How Dropbox securely stores your passwords

It’s universally acknowledged that it’s a bad idea to store plain-text passwords. If a database containing plain-text passwords is compromised, user accounts are in immediate danger. For this reason, as early as 1976, the industry standardized on storing passwords using secure, one-way hashing mechanisms (starting with Unix Crypt). Unfortunately, while this prevents the direct reading of passwords in case of a compromise, all hashing mechanisms necessarily allow attackers to brute force the hash offline, by going through lists of possible passwords, hashing them, and comparing the result. In this context, secure hashing functions like SHA have a critical flaw for password hashing: they are designed to be fast.

Read more