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How are wallet passwords stored on the user's machine, and what encryption / hashes are used?

marked as duplicate by Moroccan Engineer, seek adventure, 254123179 Nov 8 '16 at 21:41

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Wallet passwords are never stored on your computer. They're used at the time of input to derive the encryption key which is then used to decrypt your actual wallet data.

Deriving the key from the password is done with CryptoNight. The encryption of wallet data (using the derived key) is done with ChaCha8.

More details can be found here.

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