1.7. Authentication Methods
In addition to those authentication types, SharePoint offers two Windows authentication methods during installation. These protocols don't just govern how authentication data is passed on the network for users trying to access SharePoint; they govern how SharePoint service accounts themselves access resources:
NTLM
This secure protocol encrypts usernames and passwords over the network. It simply sends data to the authenticating authority and back. This protocol does not require additional configuration, and it is suggested for most SharePoint scenarios.
Kerberos
This secure protocol encrypts data but handles authentication differently than NTLM. Kerberos is based on ticketing. A username and password are passed to ...
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