Quote from: gmaxwell on January 31, 2014, 12:20:25 AM

As a KDF? Can you provide some evidence for that?

If instead you were saying PBKDF2-SHA512, okay but probably not worth the complexity to include more mandatory code.

The parameters selected should work on embedded devices. And with the support for delegation it doesn't matter quite as much if the selected parmeters didn't work on some device.

Granted, there isn't a whole lot of skepticism of scrypt, but people do recognize that scrypt is not as thoroughly vetted as, say, PBKDF2-SHA*. For those worried about, say, side channel attacks on memory usage, not using scrypt may be preferable.

Let's say we use the absolute minimum scrypt parameters for our embedded device. The most memory-efficient KDF function (KDF 0 in this spec) will use over 16MB of RAM, which is too high for many very small/cheap devices. Yes, we can delegate out the strong hashing, but this might not always be practical or wanted. Users may not have access to a stronger device (think of a very small, cheap, autonomous wallet generator device), or may not trust a stronger device enough to use it and possibly reduce their security to that of HMAC-SHA512.

Of course, there's also the non-offloadable scrypt hash later on. However, the parameters of 10,1,1 are so small that it's probably barely any better than PBKDF2-SHA512 for attack resistance.

Quote from: riplin on January 31, 2014, 02:01:23 AM

Agreed. The whole point of using Scrypt is to reduce the number of brute force attempts per second. SHA is very suitable for optimization whereas Scrypt less so.

Assume an external device must be used for strong hashing. If the external device is compromised, and the attacker has access to the encrypted wallet such that they can determine the salt, the security of the passphrase is limited to HMAC-SHA512 anyway.

If we allow for, say, PBKDF2-SHA512 to be used for strongH generation, it can be run on extremely memory-contrained devices. I also really doubt that the second, non-offloadable scrypt with parameters 10,1,1 is much better than PBKDF2-SHA512.