Information Security Officer Question:

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Salt at its most fundamental level is random data. When a properly protected password system receives a new password, it will create a hashed value for that password, create a new random salt value, and then store that combined value in its database. This helps defend against dictionary attacks and known hash attacks. For example, if a user uses the same password on two different systems, if they used the same hashing algorithm, they could end up with the same hash value. However, if even one of the systems uses salt with its hashes, the values will be different.