It's possible to use a hash function as an encipherment scheme if used in counter mode.
Let's suppose I take a 64-bytes (512-bits) seed/key and hash it concatenated with counters, and use it as a encipherment scheme. But the hash function has its digest output size of 32-bytes.
Some hash function such as Blake2 and Blake3 have options for specifying an counter, but counters can be used with any (criptographic) hash functions using the following scheme:
H(00∥S)∥H(01∥S)∥H(02∥S)∥H(03∥S)∥…
H is the hash, 00/01/02/03 the counters and S the seed (key).
If I use this 64-bytes seed with a hash function with a digest output size of 32-bytes, will the security of this encipherment scheme be at most minimal{input,output}? Or will be 512-bits (same size of the seed/key)?
I'm asking this because using a 64-bytes seed and having 32-bytes of digest size (256-bits), 2^256 another seeds of the same 64 bytes size will produce the same output.