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Web password files such as those managed by htpasswd should not be within the Web server's URI space -- that is, they should not be fetchable with a browser.
This program is not safe as a setuid executable. Do not make it setuid.
The use of the -b option is discouraged, since when it is used the unencrypted password appears on the command line.
When using the crypt() algorithm, note that only the first 8 characters of the password are used to form the password. If the supplied password is longer, the extra characters will be silently discarded.
The SHA encryption format does not use salting: for a given password, there is only one encrypted representation. The crypt() and MD5 formats permute the representation by prepending a random salt string, to make dictionary attacks against the passwords more difficult.