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http://zef.me/archives/2005/08/13/sptp-decentralized-single-sign-on/ -
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The only thing I was wondering, the username looks like an e-mailaddress (I presume it isn't), won't this be confusing for some users?
Second: I think an important part of having single sign-on is not having to give out my password to every single service I sign up to. In your proposal, my password is travelling through their service. Now, if I also use this account at any other service, the first service has both the username and the password, so anyone from any of the services I am subscribed to can impersonate me at any of the other services.
Not good.
Everyone should have their own RSA-like keypair.
The only thing that has to be done to authenticate you is to challenge you to prove that you got the private key alongside the public one.
The only way I could imagine this would work is that each "login" site only asked for a username (i.e shane@zefhemel.com). That single site could then parse out the server and redirect them to the profile host where the user then types in the password. If successful, the profile host sends a response back to the original site containing a confirmation ID and username. Then some sort of verification code would need to be executed to ensure the confirmation ID was legit.
Basically, it would work almost exactly like Passport, as login sites don't actually work with the username/password, but without a centralized server.
Then you have to worry about login box cloaking and all sorts of other fraud activities.