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That is why the pass phrase is required to have a lot of entropy. Even if you know the algorithm used, you're going to have to guess the pass phrase to verify that. And the pass phrase is harder to guess than most people's passwords are.

Aside from the implementation details that you've raised, I'm not finding as many flaws as I expected in it.

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So put that high entropy pass phrase in Keepass and don't worry about a cracker getting access to all your accounts through a misplaced hash. With all these sites getting attacked you have to assume anything you put in a website is public knowledge.

I mean, using a password safe is no more inconvenient than having to go to a website. When set up, the safe can even be a one click auto-fill deal. I don't see any reason to take the added risk.

I'm not recommending this approach. I'm merely saying that it isn't as trivially broken as one would think.

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