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5
It looks to me that the original intent was to make sure that all bits of the hash digest have an equal chance to contribute to the truncated portion. But one of the properties of a secure hash function is to ensure that a single bit change results in a cascade that yields changing bits across the entire digest. If you don't trust this property in the hash ...
1
It looks like unnecessary window dressing to me. As far as I can see, there is absolutely no reason to use this scheme instead of just choosing the first four bytes of the hash. It looks like unnecessary complexity -- or, as fgrieu put it, over-engineering. If the hash function is any good, then all this should be unnecessary. And if the hash function ...
1
RFC 4226, section 7.5 defines two shared key generation schemes: deterministic and random. I would suggest that you use the deterministic scheme, which only requires the server to store a single "master key":
"Deterministic Generation
A possible strategy is to derive the shared secrets from a master
secret. The master secret will be stored at ...
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