This blog post is inspired by a question on Information Security Stack Exchange about two weeks ago. The question seems to have attracted quite a bit of attention (some of it in an attempt to defend the flawed scheme) so I would like to write a more thorough analysis of the scheme.
Let us start by discussing the current standard for authentication. Passwords. No one is arguing that passwords are perfect. Far from it. Passwords, at least passwords in use by most people are incredibly weak. Short, predictable, easy to guess. This problem is made worse by the fact that most applications do not sto …