But if the valid hash changes as a function of time (e.g. a time based salt value), does it still matter as much, then? If a stale hash is stolen, then it doesn't allow to log in since it's no longer valid, nor does it allow figuring out the original password.

I find it interesting to reason about all of the interesting ways this could still break, as long as the words of Eoin Woods [1] are followed: "Never invent security tech.", to only reason about these things outside of production environments, and use tested solutions there. In that regard, asymemetric cryptography and the frameworks surrounding it seem to be the one way to go.

Of course, that brings up a further question: why aren't certificates the default way to sign up for sites for end users? Instead of coming up with a password, or using API keys or whatever, why not create a certificate through some sort of a browser/external mechanism instead? It feels like no attempts have been made to make something like that easier, so that it'd replace the concept of passwords.

Thanks for your input, but i guess i shouldn't take up too much of your time.

  [1] https://speakerdeck.com/eoinwoods/secure-by-design-security-design-principles-for-the-working-architect?slide=31 (or in video form: https://www.youtube.com/watch?v=4qN3JBGd1g8 )

Thanks for the link, it seems like an interesting approach!

Interesting. But this point seems a bit different than the one tialaramex was making.

tialaramex's criticism of passwords was that Edward can use the stolen ones eternally. But if your actions are followed, with Facebook resetting all those users' passwords and forcing them to reconfirm via email or phone, then tialaramex's criticism doesn't really apply anymore. The criticism only applies to users who reused their passwords on other sites, because Edward can still attack those other sites.

Invalidating all cookies will only happen if Facebook learns of the attack. Facebook can invalidate all cookies used during the 1 hour period, and they can also invalidate all passwords used during the 1 hour period (a much smaller number) and force people to recover their accounts by other means (recovery email or phone). Yes, it would be quite painful, but it would be possible.

Most users are not motivated or knowledgeable enough to manually invalidate sessions. If a user is motivated to do that, the user could just as easily do a password change.