Most people I’ve seen online compute a simple hash of password + salt for persistence and authentication. This is the accepted standard in a straight-forward solution:
byte[] Hash(string password)
{
byte[] pass = System.Text.Encoding.UTF8.GetBytes(password);
//Create the salt to use
byte[] salt = new byte[32];
new RNGCryptoServiceProvider().GetBytes(salt);
//Create the hash of password and salt
HashAlgorithm hashAlgo = new SHA256Managed();
hashAlgo.TransformBlock(salt, 0, salt.Length, salt, 0);
hashAlgo.TransformFinalBlock(pass, 0, pass.Length);
byte[] hash = _hashAlgo.Hash;
hashAlgo.Initialize();
//Copy the combined salt + hash to a single array
byte[] result = new byte[salt.Length + hash.Length];
Array.Copy(salt, result, salt.Length);
Array.Copy(hash, 0, result, salt.Length, hash.Length);
return result;
}
The only deviation i’ve seen from this is to either use existing data (say a primary key in the database) for the salt, or to ‘hide’ the salt at some offset in the result. Both of these ideas are valid yet amount to not much more than a little obfuscation. I don’t recommend it.
Now if you REALLY want to secure your passwords and/or protect against brute force attacks there is another approach. The approach is quite common in generating crypto keys from passwords but can just as easily be used for hashing the password. The idea/concept is expressed in RFC2898 by the introduction of the iteration count. By introducing this into the password hash we increase the computational complexity required to test a password by several orders of magnitude. The straight-forward way of achieving this in the BCL is as follows:
byte[] Hash(string password)
{
//Create the salt to use
byte[] salt = new byte[20];
new RNGCryptoServiceProvider().GetBytes(salt);
//Combine the salt with the iteration-count
byte[] iterationBytes = BitConverter.GetBytes(1010);
byte[] iterationSalt = (byte[])salt.Clone();
for (int i = 0; i < iterationSalt.Length; i++)
iterationSalt[i] ^= iterationBytes[i % iterationBytes.Length];
//Create the hash of password and salt
DeriveBytes deriveBytes = new Rfc2898DeriveBytes(password, iterationSalt, 1010);
byte[] hash = deriveBytes.GetBytes(20);
//Copy the combined salt + hash to a single array
byte[] result = new byte[salt.Length + hash.Length];
Array.Copy(salt, result, salt.Length);
Array.Copy(hash, 0, result, salt.Length, hash.Length);
return result;
}
This will work very well but will be more costly to calculate than the first algorithm. I would not want to use this in a system that verifies passwords on every request (i.e. Basic Auth over SSL); however, for token-auth systems this will prove much more durable to brute force attacks. By combining the iteration count to the salt (or key) you make the attacker repeat the entire iteration sequence for each iteration count attempted. This makes it significantly more difficult for them to steal the password hashs and crack the passwords without also stealing the software or otherwise knowing the iteration count. Even knowing the iteration count it's now much more expensive to compute each attempt at matching an entry in their password dictionary.
Recently I've added the PasswordHash class to wrap up some of this behavior. Note that this class does not combine the iteration count with the salt, yet still provides significant security benefits over a simple hash.