The Okta Bcrypt incident illustrates critical lessons in API design and the proper use of cryptographic functions. Bcrypt, designed specifically for hashing passwords, was misapplied in this case; the confusion and miscommunication surrounding it highlighted the difference between password hashing and key derivation functions (KDFs). Key discussions center on poor implementation practices such as failing to validate hashed values against their original data and using bcrypt on publicly visible user data. Although arguments arose regarding specific algorithms and their properties, the fundamental issue lies in how the API mishandled the relationship between input data and its hashed output. This incident emphasizes the need for proper understanding of cryptographic libraries and their implementations, as well as the importance of not storing passwords in ways that expose them to potential breaches. Furthermore, the transition from bcrypt to more robust algorithms like Argon2 is gaining traction, with the community recognizing this evolution in secure password practices.