Others have made such great explanations as to what OAuth is and what it does like Eran Hammer-Lahav’s post so I won’t repeat it.
I will say that OAuth should make the Internet a little bit safer by giving the technical means to remove the need of a certain service asking the user to give his/her username and password to access another service that that user is also using.
OAuth is to credentials delegation what OpenID is to authentication. An open standard for delegating a user’s credentials between services, the same way OpenID is an open standard for authentication.
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