>> Imho authentication only makes sense with encryption as well.
>
> I don't think this is true.
> Assume 2 computers, Server and Client, with both and
> the network between them under the same administrative control,
> which prevents snooping. This scenario does not really need
> encryption. It does, however, need authentication, or a non-root
> user on client could access any server resource simply by opening
> a socket.

Hmm indeed that is an issue, this regular user connecting.

Maybe we can introduce a preshared handshake or so:
server:  hi client, hash this challenge with our preshared key
concattenated to it
client: ...
and vice versa
where challenge is for example a 16 byte (byte, not bit) random.

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