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OAuth doesn’t share password data but instead uses authorization tokens to prove an identity between consumers/clients and service providers. OAuth, in general, is a protocol for providing the ability to authorize a token to make authorized requests on behalf of a user without exchanging or exposing the username and or password.
OAuth 2.0 is not the same as OAuth 1.0. OAuth 2 uses the common practice of TLS/SSL connections to handle communication security whereas OAuth 1 relies on complicated signature signing and can be used over nonsecure connections.