sha1 is used for hashing the password, yet it's a deprecated insecure hashing algorithm, next to that it's not meant for hashing passwords!!!all
use a hashing algorithm made for password hashing: (pbkdf2, bcrypt, scrypt).
I would suggest bcrypt (npm bcrypt), It will automatically take care of adding a salt!
get your crypto together this app is highly insecure currently
I think the code is just confusing and should probably be re-written.
If you trace through what actually happens, crypt3 is required, and used by default, and that uses sha512 with a salt. So it is secure. Just needs a re-write for clarity.
Something to have on mind for #192
https://github.com/verdaccio/verdaccio/releases/tag/v3.0.0-beta.6 includes bcrypt support
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