Any time a security credential (e.g. database password) is needed to identify one computer system to another, there is the problem of how to securely store that credential on the client-side of the connection. On the server-side the password is usually encoded with some sort of one-way hash, but on the client-side it needs to be accessible in plain-text for the authentication mechanism to function. Even if we make the assumption that this client computer system is secure and decide we can store it in plaintext on disk, there is the question of how to populate that disk in the first place.
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