Wrangling Entropy: Next-Generation Multi-Factor Key Derivation, Credential Hashing, and Credential Generation Functions

Abstract: The Multi-Factor Key Derivation Function (MFKDF) offered a novel solution to the classic problem of usable client-side key management by incorporating multiple popular authentication factors into a key derivation process, but was later shown to be vulnerable to cryptanalysis that degraded its security over multiple invocations. In this paper, we present the Entropy State Transition Modeling Framework (ESTMF), a novel cryptanalytic technique designed to reveal pernicious leaks of entropy across multiple invocations of a cryptographic key derivation or hash function, and show that it can be used to correctly identify each of the known vulnerabilities in the original MFKDF construction. We then use these findings to propose a new construction for ``MFKDF2,'' a next-generation multi-factor key derivation function that can be proven to be end-to-end secure using the ESTMF. Finally, we discuss how MFKDF2 can be extended to support more authentication factors and usability features than the previous MFKDF construction, and derive several generalizable best-practices for the construction of new KDFs in the future.