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I'm designing a simple one-time-password mechanism for authentication against a possibly-insecure server - i.e. I don't want to use symmetric shared secrets.

The first idea that came into mind was using a hash-chain with a cryptographic hash function, where each device has a random $\text{key}$ and broadcasts $H^n(\text{key}), H^{n-1}(\text{key}), H^{n-2}(\text{key}), \ldots, H^{1}(\text{key}), \text{key}$. However, storing the whole chain requires too much memory for my needs.

I found some techniques here and here to store only few elements from the chain ($H^{n-k}(\text{key}), H^{n-2k}(\text{key}), H^{n-3k}(\text{key}), ...$), and calculate the elements in between dynamically. This converts the "space problem" to a "calculation cycles problem" - unfortunately all the cryptographic hash functions that I've checked require too many cycles (=too much power consumption) for my needs, considering the fact that I have to calculate them multiple times in order to save a significant amount of space.

I consider using less secure hash function for the dynamic hash calculation. This hash will be used only for the elements "between" $H^{n-k}(\text{key}), H^{n-2k}(\text{key}), H^{n-3k}(\text{key}), ...$ so it has to be "unbreakable" only for $k$ time - suppose a key is generated every minute, finding $k$ sequential preimages in $k$ minutes should be "really hard" (but finding them in $10k$ minutes may be possible).

I don't care about second preimage resistance, or defending against very resourceful attackers.

Do you have any suggestions for a hash function? What about SipHash-2-4?

Thanks!

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AES with a fixed key could be used as one-way function: $H^{i+1}=AES(H^i) \oplus H^i$. But it's not a recommended mode. –  CodesInChaos Jan 25 at 23:51
    
Is SipHash fater or slower than AES? What if I use the less recommended SipHash-1-2 ? –  Ozo Jan 25 at 23:59
    
Just removed my previous silly comment... don't bother replying... You're referring to the Davies-Meyer compression, right? I guess that the Matyas-Meyer-Oseas is also an option. –  Ozo Jan 26 at 0:20
    
You should definitely check this answer at Programmers.SE, which was posted to a similar question. –  e-sushi Jan 26 at 2:04
    
@e-sushi The OP obviously needs first pre-image resistance, those don't offer it. –  CodesInChaos Jan 26 at 11:03
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