I want to clear up some misconceptions about how passwords can be stored for secure purposes. Specifically, it is very possible to not store a password, yet still be able to test user credentials when they attempt to log on. Dumb systems store either plaintext or encrypted passwords, while more secure systems never store passwords, but only password hashes and hopefully with randomly generated salt. I explain what that all means in this video. I guess you also learn hacking techniques by proxy in this video.
When it comes down to it, you never can be fully sure if web services are actually doing user credentials in a secure way. Always be safe when using different services and use different passwords.
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