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In addition to Ilmari's excellent answer I would like to address your questions and clarify some points for you: I am trying to understand why is bcrypt called a Key Derivation Function? Because it derives a key from given input. This key is then used as unique value for a password in the case it is used for password hashing. bcrypt is a Password Based ...


It's called a key derivation function because that's what you'd typically use its output for — as a key for some other cryptographic algorithm. (Of course, you can also use the output of Bcrypt for other purposes, e.g. storing it in a database as a password hash, but that's really a secondary use case.) In general, key derivation functions (KDFs) ...

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