You seem to be doing a lot of work fudging up the password, without any real gain. Your scheme could be simplified by just passing a random string to the user and storing that same random string in the database along with the username and password.

What you seem to be attempting is usually called ticket based authentication. The user provides a username and password, and if authenticated, you give them a ticket that will allow them back in without needing to enter their password again.

But you are missing a critical piece in order to make it secure. It is absolutely vital that the ticket can be expired at some point. Otherwise an attacker could sniff the ticket, or pull it from someones cookie file, and use it at any time in the future to gain access without a password.

- Cees

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