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Glossary

What Is OAuth

OAuth lets users grant apps limited access to their accounts without sharing passwords. Plain-English definition for business owners.

Definition

OAuth (Open Authorization) is a standard that lets a user grant one application limited access to their account on another application, without sharing their password. Instead of handing over login credentials, the user approves a specific permission request, and the receiving application gets a token that allows it to do only what was approved. OAuth is the mechanism behind every "Sign in with Google" or "Connect your Facebook account" button you have ever seen. It works closely with APIs and is a cornerstone of modern authentication.

Why It Matters

Before OAuth, connecting two services often meant giving one service your username and password for the other. That was a serious security risk: if the connecting service was compromised, your credentials were exposed. OAuth eliminates that risk. It also gives users control over exactly what access they grant, and they can revoke it at any time. For business owners, OAuth matters because your customers expect secure, convenient login options, and your internal tools increasingly need to connect to third-party services like email providers, cloud storage, and analytics platforms. Understanding OAuth helps you evaluate integrations and ensure your systems follow modern security practices. For a related control, see two-factor authentication.

Example

You install a scheduling tool that needs to read your Google Calendar to find available meeting slots. Instead of typing your Google password into the scheduling tool, you click “Connect with Google”. Google asks if you are happy for the tool to view your calendar events. You approve, and Google gives the tool a token that allows read-only calendar access. The scheduling tool never sees your Google password, and you can disconnect it from your Google account settings at any time. Browse the full glossary for related definitions.

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