From this issue on the authlogic github account
Authlogic has changed its default encryption system from SHA512 to SCrypt.
It seems that you need this in your gemfile
gem 'authlogic', '~> 3.4.0'
gem 'scrypt'
If you don't want SCrypt you can use Sha512 by putting this
acts_as_authentic do |c|
c.crypto_provider = Authlogic::CryptoProviders::Sha512
end
in your User.rb
You also might need to specify the version of the authlogic gem
gem 'authlogic', github: 'binarylogic/authlogic', ref: 'e4b2990d6282f3f7b50249b4f639631aef68b939'
but I guess this will be fixed soon