OAuth vs. OAuth2: Key Differences and When to Use Each (2024)

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Mar 26, 2024

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A Verizon study showed that 61% of data breaches involve stolen credentials, making it the most popular form of cyber attack.

In the 2000s, Blaine Cook decided enough was enough and invented OAuth (or Open Authentication); a way to authenticate user identity to counter malicious online attacks.

It has many forms, with the most popular being OAuth 1.0 and OAuth 2.0.

In this article, we will explore both authentication protocols and identify which is better for your application: OAuth 1.0 or OAuth 2.0.

OAuth 1.0 is an authorization protocol that lets you approve an application’s interaction with another without sharing your password. Instead of your password, OAuth uses authorization tokens to verify your identity. It offers you granular permission control, i.e. provide full access to certain applications while others only get read-only access.

OAuth 1.0 comprises three main components: user, consumer, & service provider. Let’s understand it using a simple example where Mike (user) wants Instagram (consumer) to share his posts on his Twitter (service provider) stream.

First, Mike will let Instagram know that he would like the application to post directly to his Twitter stream. Next, Instagram will reach out to Twitter for a request token that Mike can use to approve Instagram’s access request.

Once Instagram receives the request token, it redirects Mike to Twitter (with the request token) so he can authorize access and approve what actions Instagram can make on his behalf. Finally, Instagram will reach out to Twitter to convert its request token to an access token (with a secret) giving them the authority to post on the user’s (Mike’s) behalf.

NOTE: Tokens are accompanied by a “secret” unique to each consumer. The service provider blocks any forged requests by using the secret to verify requests are coming from the consumer.

OAuth 1.0 has grown in popularity since its inception in 2006 because it simplifies the third-party integration process considerably. But, its use continues even today because it offers so much more.

Security and access control

OAuth 1.0 lets you securely share data between applications without worrying about username and password leaks. Moreover, users authorize how much access applications have and even have the power to revoke that access at any time.

Flexibility and compatibility

OAuth 1.0 is a widely adopted security protocol, making it compatible with most applications in the market today. Also, being an open-sourced protocol, developers can create a custom authorization process to suit their needs.

Data protection

Since OAuth 1.0 doesn’t use passwords or usernames, hackers will find it harder to steal login credentials or personal info. Users can rest assured their data remains safe while accessing third-party applications.

OAuth 1.0 offers some challenges during development and implementation.

Complex signature mechanism

OAuth 1.0 uses a signature mechanism that both the consumer and service provider must use. Generating and verifying these signatures is expensive and error prone.

Token management

OAuth’s token system (request tokens, access tokens) and their associated secrets can create storage and management complexities. Moreover, diagnosing and resolving any errors is challenging.

Negative user experience

Multiple redirects and steps in the authorization process can create a confusing user experience — leading to drop-offs and negative feedback online.

To mitigate these limitations, developers created the OAuth 2.0 framework in 2012 which offered a more streamlined and flexible approach to authorization and authentication.

OAuth 2.0 is a more modern and widely adopted protocol for authentication and authorization. It completely redesigns OAuth to make it easier for developers to implement authorization processes.

It even uses different terminology. OAuth1’s consumer, service provider and user become client, authorization server, resource server and resource owner in OAuth 2.0. OAuth 2.0 is commonly used for securing API access and enabling single sign-on (SSO) between different services.

OAuth 2.0 follows a six-step process to authorize access. We’ll use the same example where Mike (resource owner) wants to allow Instagram (client) to post on his Twitter (resource server).

First, Instagram will request access to Twitter via the authorization server. Mike is sent a prompt from the authorization server to verify the authorization grant, after which the authorization grant is returned to Instagram.

Using the authorization grant, the authorization server validates the request and grants Instagram an access token to use Twitter. Now, Instagram can post on Mike’s behalf without sharing any personal credentials.

OAuth 2.0 was introduced to address OAuth’s drawback, which is also where most of the differences arise.

Non-browser application support

OAuth doesn’t work well with non-browser clients since it was designed specifically considering message interactions in web applications. OAuth 2.0 circumvents this by introducing multiple authorization paths depending on the client (desktop, mobile, living room application, etc.).

Simpler signing mechanism

As discussed earlier, OAuth requires that signatures generated at the server and endpoint be exact matches. OAuth 2.0, on the other hand, removes this requirement by using Transport Layer Security (TLS) or Secure Sockets Layer (SSL) to protect messages during transit.

Better security

OAuth lets you store its tokens for a year or more while OAuth 2.0 offers access tokens with a short-lived expiration date. These refresh tokens offer better security and reduce the chances of phishing. New tokens can be produced without reauthorizing.

OAuth 2.0 supports different use cases apart from the most common — third-party app authorization and authentication.

Microservices

Developers can set up an OAuth 2.0 protocol with an authorization server that can approve access tokens for individual services to access other services in the architecture.

Single Sign-on (SSO)

OAuth 2.0 allows users to sign in to an application once and use the same authorization to access other applications. When a user accesses a new application, they are redirected to an authorization server. The authorization server checks if the access token is already authenticated before allowing access to the application.

API gateways

In such applications, the API gateway itself acts as the authorization server and issues access tokens to clients. When a request is made, it checks the client’s token before pushing the request forward.

Smart devices

OAuth 2.0 streamlines the authorization flow in devices like smart TVs, refrigerators, ACs, etc. with limited input capabilities, making it harder to provide authorization.

From the facts above, it’s pretty obvious that OAuth 2.0 is the better option. However, I would argue that OAuth also can hold its own depending on where you’re applying the protocol. For example, Google moved fully to OAuth 2.0 in 2012 while Twitter still supports OAuth.

OAuth is still very viable in some cases compared to OAuth 2.0 since it offers added security apart from the TLS-based measures. Old systems using OAuth should stick to it while new systems that rely on server-to-server authorization should opt for OAuth as well. Cases where applications will benefit from non-browser support and easier development should go for OAuth 2.0.

It all comes down to the use case: which will your business benefit from, OAuth or OAuth 2.0?

OAuth 1.0 and its successor, OAuth 2.0, represent two distinct authorization and authentication approaches.

OAuth 1.0 enhanced security and user control. But it also presented certain complexities in terms of signature mechanisms and token management. Meanwhile, OAuth 2.0 offered a more adaptable authorization protocol that could be used with a broad range of applications, including non-browser clients and smart devices.

Despite these differences, OAuth 1.0 still holds its own, particularly in legacy systems. Your choice of authorization protocols should be defined by your business’s unique needs and requirements.

OAuth vs. OAuth2: Key Differences and When to Use Each (2024)

FAQs

OAuth vs. OAuth2: Key Differences and When to Use Each? ›

OAuth lets you store its tokens for a year or more while OAuth 2.0 offers access tokens with a short-lived expiration date. These refresh tokens offer better security and reduce the chances of phishing. New tokens can be produced without reauthorizing.

What is the difference between OAuth and OAuth2? ›

OAuth 1.0 has a consumer, service provider, and user, and it doesn't explicitly separate the roles of the resource server and authorization server. On the other hand, OAuth 2.0 has a client, authorization server, resource server, and resource owner. That's why these versions don't have backward compatibility.

What is the difference between OAuth V1 and OAuth V2? ›

V1 API accepts client id and client secrets in the request body. Whereas V2 accepts client id and client secret in the Authorization header with Basic auth type. Note :- Please write "B" in "Basic" in uppercase. Only change in the /authorize endpoint is the version number from v1 to V2.

What is the difference between OAuth and OAuth2 in Postman? ›

The main difference between OAuth 1.0 and OAuth 2.0 in Postman is that OAuth 2.0 provides better support for mobile and web applications with a more streamlined and secure authorization process. OAuth 2.0 also uses SSL/TLS for communication, making it more secure.

Why is a bad idea to use OAuth 2.0 for authentication? ›

The purpose of OAuth2 Tokens is to authorize requests at a first-party server (or API). If the third party uses the OAuth2 Access Token as proof of authentication, an attacker could easily impersonate a legitimate user.

How do you use OAuth and OAuth2 authentication mechanisms? ›

For the Authorization Code grant, use response_type=code to include the authorization code. For the Implicit grant, use response_type=token to include an access token. An alternative is to use response_type=id_token token to include both an access token and an ID token .

What is OAuth 2.0 in layman's terms? ›

OAuth 2.0 enables the resource owner (i.e., the user) to give the client (i.e., the third-party application) access to their data without having to share their credentials. Instead, the credentials are shared with the authorization server, which issues an access token to the client.

What are the benefits of OAuth2 over OAuth1? ›

Main Benefits Gained from Using OAuth 2

Enhanced Security: OAuth 2.0 eliminates the need for shared secrets between the client and resource server, a potential vulnerability in OAuth 1.0. It relies on access tokens with limited lifespans and refresh tokens for extended access, improving overall security.

Should I use OpenID or OAuth2? ›

So, if you're looking for a way to authenticate your users, go with OpenID Connect. If you're looking for a robust way to manage a user's authorization, go with OAuth2. Ultimately, if your application needs it, you can use both.

Is OAuth2 more secure than OAuth1? ›

OAuth2 is not necessarily more secure than OAuth1, and using OAuth2 does not inherently lead to better security. Many considerations must go into each specific implementation.

Is OAuth2 used for SSO? ›

OAuth is one of the most common methods used to pass authorization from a single sign-on (SSO) service to another cloud application, but it can be used between any two applications. Other protocols can perform this function as well, although OAuth is one of the most widely used ones.

How does OAuth 2.0 work in the rest API? ›

OAuth 2.0 is a standard for implementing delegated authorization, and authorization is based on the access token required to access a resource. The access token can be issued for a given scope, which defines what the access token can do and what resources it can access.

What is the difference between JWT and OAuth2? ›

JWT token vs oauth token: JWT defines a token format while OAuth deals in defining authorization protocols. JWT is simple and easy to learn from the initial stage while OAuth is complex. OAuth uses both client-side and server-side storage while JWT must use only client-side storage. JWT has limited scope and use cases.

When should I use OAuth2? ›

If you want to enable other companies and developers to access the data of your users with their consent, then OAuth2 and OpenID Connect are essential. OAuth2 enables users to grant consent to third-party applications to access their data, providing a secure way to authenticate user requests.

Is OAuth2 obsolete? ›

It states that OAuth 2.0 is deprecated.

What is the problem with OAuth2? ›

OAuth 2.0 Refresh Token is missing

If you expect an OAuth 2.0 Refresh Token but aren't receiving one, this can have multiple reasons: You are using an implicit or hybrid flow. These flows never return a refresh token! You are using the client_credentials grant which can't return a refresh token.

Is OAuth 2.0 an authorization protocol and not an authentication protocol? ›

OAuth 2.0 was intentionally designed to provide authorization without providing user identity and authentication, as those problems have very different security considerations that don't necessarily overlap with those of an authorization protocol.

What is the difference between basic authentication and OAuth2? ›

OAuth uses advanced user identity verification processes and is claimed to have 100% credibility. When the end-user makes an access request, a new token is created. It maintains the dependability of the process. Basic authentication offers no such facility.

What is the difference between OAuth and OAuth 2.0 in Salesforce? ›

OAuth 2.0 is the next evolution of the OAuth protocol which was originally created in late 2006. OAuth 2.0 focuses on client developer simplicity while providing specific authorization flows for web applications, desktop applications, mobile phones, and living room devices.

What does OAuth stand for? ›

OAuth, or open authorization, is a widely adopted authorization framework that allows you to consent to an application interacting with another on your behalf without having to reveal your password. It does this by providing access tokens to third-party services without exposing user credentials.

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