Balloon hashing

Balloon hashing is a key derivation function presenting proven memory-hard password-hashing and modern design. It was created by Dan Boneh, Henry Corrigan-Gibbs and Stuart Schechter in 2016.
The authors claim that Balloon:

has proven memory-hardness properties,
is built from standard primitives: it can use any standard non-space-hard cryptographic hash function as a sub-algorithm,
is resistant to side-channel attacks: the memory access pattern is independent of the data to be hashed,
is easy to implement and matches the performance of similar algorithms.

Balloon is compared by its authors with Argon2, a similarly performing algorithm.

Algorithm

There are three steps in the algorithm:

Expansion, where an initial buffer is filled with a pseudorandom byte sequence derived from the password and salt repeatedly hashed.
Mixing, where the bytes in the buffer are mixed time_cost number of times.
Output, where a portion of the buffer is taken as the hashing result.