No, I think you're confusing my issues with the ones of the poster to whom that was a reply. My concerns are not so much about security of doing more hashing server side, but rather that you will be burning more cpu to do this cute thing when you could be using that cpu to increase the work factor which users might actually care about. And since modern web auth systems already use ajax to check the password and simply modify the page if the password is wrong, the argument that it's better to see confirmation before submitting rather than submit and wait for confirmation doesn't seem to make sense.
You're waiting for (bcrypt + network latency) in either case. If the standard behavior is unusable (because the auth page reloads if there's an auth error), that's a design problem, to be addressed by not reloading the page on auth errors, not by adding gimmicks IMO.
Furthermore, if you insist on this sort of thing, why not pass back a boolean indicator of whether the full hash matched, and display a checkmark when it's right? You could even automatically log-in the user if it matches. Since you would be doing a full bcrypt each time anyway, in order to do the 8-bit comparison, and you've put limits in place to prevent abuse...
it's better to see confirmation before submitting rather than submit and wait for confirmation doesn't seem to make sense.
Personally I feel less comfortable with an outright rejection ('Username/password is wrong' in bold red) than with a subtle hint that something's not quite right with what I typed. Subconsciously. So I think the addition of a real-time validity hint makes it for a smoother and more pleasurable user experience.
Green check if the password is valid, rather than this grid that's meaningless anyway... all it does is leak (hopefully) useless information about the first n (8?) bits of the bcrypt function. There's no correlation between how close the password is to the stored password, and how close the bcrypt hashes are to each other. You really only care about one thing... does it match or not? And if it does, you might as well check if it matches the full hash and not the first 8 bits... since you'd only be sending back a binary indicator to the client's browser.
You still end up lagging because of the time it takes to do the hash check, and if I were typing in a password I would hit enter and not wait for either a neat grid or a checkmark. If the password is wrong when the user has voluntarily submitted the form, that's when you break out the red warning, but it shouldn't take any longer to do that than to display a green checkmark. The difference is one requires the user to press enter first, the other doesn't but requires testing every single intermediate stage the password goes through.
Finally, I'm not thrilled with the idea of a page sending incomplete passwords to a server, which may well be compromised, before I press enter. What if someone types the password for another site by accident, but corrects it before pressing enter? I know some sites already do ajaxy stuff with usernames and passwords, but I don't have to be happy about it.
> you might as well check if it matches the full hash
It is possible to look at the sun in a telescope, but only twice in a lifetime :) What you say is possible, but I don't know how to coalesce the need for near real-time response and the resistance to the brute-force attacks. That's unless you are referring to once a second validation, in which case the brute-force is still an issue.
> if I were typing in a password I would hit enter and not wait for either a neat grid or a checkmark
I don't know about you, but I get a feeling that I mistyped a password now and then and sometimes I am actually right. So my options here are to wipe it clean and retype or to somehow check if the password is more or less OK. This is what hinting is for. Also, as I said on the description page, the second use is to quickly cycle through a list of (disposable) passwords to see which one I used on a site.
> Finally, I'm not thrilled with the idea of a page sending incomplete passwords to a server
I hear you, valid point. And don't get me started on a page sending incomplete search queries to the server.
Assuming a site that originally allows 5 login attempts and locks for 15 minutes after that, under normal conditions that's an average of 180 seconds per attempt.
Assume your site allows N 8-bit partial preimage hash checks before a 15 minute lockout. (I would suggest, with 8 char minimum passwords, that you only count passwords that are 8-16 or 8-24 characters long. Otherwise a cat might try to test a several hundred char long password and the user will be locked out. DoS by feline.)
Under your system, seconds per crack attempt is (900/N + 900/5 * N/256). The first term is the number of pseudo-successful attempts with the fast 8-bit check, and the second term is checking those 1/256 passwords using the slow 5-checks-per-15-minute full auth check.
If you allow 40 8-bit checks before a lockout (N=40), you get 50.625 seconds per check.
Allowing full checks at a faster rate of 40 per 15 minutes, the second term disappears and you get to check at 22.5 seconds/check.
Obviously these decrease security, but if you're concerned about one check per 22.5 seconds, or even 1 check per 10 seconds, why would you want to decrease the effective check rate at all, from the nominal 3 minutes per check that's closer to standard? I don't think that going from 50 seconds to 22 seconds is "looking at the sun in a telescope" :)
The 256 hash buckets are going to create collisions. Given 8 char minimums, 7 incomplete passwords will be checked per user. That's at least one collision for an incomplete password per 37 users (7 * 37 > 256).
At least 1 out of 256 users will have the most common mistype of their password also collide with the real hash to 8 bits. Their only option is to change their password.
An attempt to reduce collisions would further decrease the time per cracking attempt, and since rock bottom is 22.5 seconds/request in that example, I don't think that's so horrible a price for a boost in usability, if you're going to implement this sort of password correctness hinting at all.