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XChaCha20 vs AES-256 Encryption: Which Is the Best for a Password Manager?

LastPassSeptember 12, 2024
XChaCha20 vs AES-256 Encryption: Which Is the Best for a Password Manager?

At first, just hearing that your data will be encrypted is enough. You don’t have to be a technology expert to know that encryption offers a way to safeguard sensitive information from third parties who try to compromise your device and its applications.  

Just as a car can be driven with standard or automatic transmission, there is more than one way to encrypt data. That’s why organizations need to understand the differences between XChaCha20 vs AES 256 algorithms as they choose tools like a password manager.  

What Is AES-256 Encryption?  

Comparing XChaCha20 vs. AES 256 starts by taking a closer look at each algorithm in greater detail. From there, we’ll go into the various standards' pros and cons in order to help guide your decision-making.  

Overview of AES encryption 

Originally developed in 2001 by the National Institute of Standards and Technology (NIST), Advanced Encryption Standard (AES) encryption has become commonly used within the U.S. government and many other organizations. 

The AES algorithm takes a systematic and sophisticated approach to safeguarding information. It involves breaking down data into 16-byte blocks, each of which is separately encrypted in as many as 14 rounds of processing.  

The rounds can include mixing in plaintext, transposition and substitution so the data cannot be read by cybercriminals.  

Decrypting data secured by AES requires using a key, which can range in size from 128 bits to 192 bits and even 256 bits.   

Key features of AES-256 

AES-256 reflects the maximum number of key combinations involved in encrypting data, which means it offers the highest level of protection over sensitive or classified information. It is also known as symmetric encryption, which means the same key cipher is used to scramble and unscramble the data.   

Benefits and limitations of AES-256 

AES-256 is considered a fast, efficient way to keep data secure. By modifying the data in a nonlinear way, it makes it very difficult for threat actors to parse the difference between plaintext and ciphertext. AES-256 also has a proven track record with public sector agencies that is worth taking into consideration.   

That said, AES-256 encryption can require considerable compute processing power, memory and other IT resources in order to run the algorithm, and managing keys always carries some degree of risk. If the keys are lost or compromised in some way, for example, it would still be possible for cybercriminals to decrypt and steal your data.  

What Is XChaCha20 Encryption? 

This is where the XChaCha20 vs. AES-256 becomes more interesting as you learn about how the more recently developed encryption algorithm works, and how it is being adopted.   

Introduction to XChaCha20 encryption 

A modified version of the ChaCha20 encryption algorithm developed in the early Aughts, XChaCha20 uses 256-bit steam encryption, which means each bit is encrypted.  

A sequence of random numbers known as a keystream is combined with plaintext using XOR, a widely used cryptographic technique.   

Advantages of XChaCha20 over ChaCha20  

The “X” in XchaCha20 refers to the word “extended” because the algorithm uses a longer nonce, otherwise known as the arbitrary numbers that can be used a single time in a cryptographic operation.  

Whereas ChaCha20 had a 96-bit nonce, for example, XchaCha20 involves a considerably larger 192-bit nonce. This allows for a longer cryptographic key that is more difficult to crack.   

Use cases for XChaCha20 encryption  

Though it has only been available since 2014, XChaCha20 encryption has already been adopted by a number of Silicon Valley tech companies, including Google. Other organizations have noted its usefulness in improving the secure performance of mobile applications.  

XChaCha20 is also less hardware-dependent, which could make it a good fit for organizations that can’t afford to invest in the IT infrastructure required for AES-256.  

Differences Between XChaCha20 Encryption and AES-256  

When you dive deeper into comparing XChaCha20 vs. AES-256, you should focus on the following three areas:  

Key differences in algorithm structure  

By encrypting every bit versus breaking data into blocks like AES-256, XChaCha20’s stream-based approach makes implementation fast and simple. The more advanced complexity within AES-256 could make it more susceptible to error that expose data to threat actors. For organizations that know how to apply it well, however, it remains the gold standard in cybersecurity.  

Performance comparison between XChaCha20 and AES-256  

In some scenarios, AES-256 may work faster than XChaCha20 given the compute resources involved. On mobile devices, however, XChaCha20 shines from a performance perspective because it can run on regular software.  

Security considerations for both encryption methods  

Despite its longer history, AES-256 is not without its potential vulnerabilities. Chief among these is the potential for what are known as side-channel attacks. These are incidents where an attacker could recover an AES-256 security key by monitoring information that gets leaked during the encryption process. This includes how long the system spends executing the algorithm, signal analysis, and more.  

The simplicity of XChaCha20 also means there’s less chance of people making mistakes in creating and managing the encryption keys.  

Choosing the Right Encryption Method  

If the XChaCha20 vs. AES 256 decision still seems difficult, here are some rules of thumb to keep in mind: 

Factors to consider when selecting an encryption method  

The security level you need depends in part on the nature of your organization and the sensitivity of the data you’re trying to protect. A financial institution may need to provide the strongest possible security in order to achieve and maintain regulatory compliance compared with other kinds of organizations, for example.  

You’ll also need to consider what kind of IT resources you have available to power an encryption algorithm, and what kinds of devices are primarily used to access data and applications.  

Think about the most common kinds of threats your organization can face, the level of internal expertise you have to manage encryption processes, and the most common standards within your industry.   

Use case scenarios for AES-256 and XChaCha20  

Large enterprises such as government agencies, banks and health-care providers may opt for AES-256 given its long history and their ability provide the necessary hardware to support the algorithm.  

For those in other sectors, particularly those that use smartphone-based apps or which are connecting to the Internet of Things (IoT), XChaCha20 could provide the optimal mix of security and ease of implementation and management.  

Recommendations for implementing secure encryption  

Regardless of whether you favor XChaCha20 vs. AES-256 encryption, the same best practices apply. For example, encrypting data in layers contributes to a defense-in-depth security strategy.  

Train employees on the policies you establish for centralizing and securing key management and revisit these policies regularly to tweak any potential security gaps. There could be some applications and tools where encryption is not turned on by default, for example, and employees should understand their role in ensuring all data is properly protected.  

Finally, continue to study advancements in encryption algorithms and the degree to which they are being targeted by cybercriminals.  

How LastPass Utilizes Secure Encryption  

Encryption is an integral part of how LastPass helps organizations deal with creating, managing and securing passwords.  

Encrypted vault 

When you use LastPass, for instance, you gain the ability to put credit card information, documents and passwords in a highly secure encrypted vault. It keeps all your applications and content protected from cybercriminals while still providing the ease of access employees need to carry out their work on a daily basis.  

Using the encrypted vault can help organizations avoid the kind of behaviors that increase the risk of data breaches, such as writing passwords down on pieces of paper or sharing them with colleagues through texts or e-mail messages.  

Of course, many organizations use a variety of browsers and device types, which is why LastPass offers cross-platform password management for everything from Google Chrome and Apple’s iPhone to Windows, Mozilla Firefox and more.  

Meeting compliance standards 

Many organizations operate in a regulatory environment where data encryption is not a nice-to-have but a must. LastPass recognizes this and has included compliance as one of the four pillars of the LastPass Trust Center, which provides visibility into our company’s investments and approach to security.   

Preventing unauthorized access 

The bottom line is that encryption should provide peace of mind for organizations that no matter how much their data is growing in volume and complexity, it can be used without fear of being misused by threat actors.   

Strong encryption means that even if cybercriminals were somehow able to compromise an application or database, the data would essentially be useless to them. Wherever you land on the XChaCha20 vs. AES 256 debate, that level of security should be your ultimate goal.  

Choose a security partner that knows encryption inside and out. Start your LastPass trial today.