OAuth 2 is definitely what you're looking for. In particular it looks like 
you want the Resource Owner Password 
Credentials<http://tools.ietf.org/html/rfc6749#section-1.3.3>flow.

If by chance you are using Restify, I made a thing that will automatically 
handle this for you: Restify–OAuth2<https://github.com/domenic/restify-oauth2>. 
Even if you're not, take a look at the readme to understand the basic 
RESTful flow of authentication, and at the code and example server to see 
the basic idea implementations.

On Wednesday, May 1, 2013 1:20:24 PM UTC-4, Alan Fay wrote:
>
> Hello!
>
> I'm trying to develop a REST API using node.js, to support an Android app. 
>  I've been able to find several resources on the web, however, most of the 
> examples I come across fall into two camps:
> 1) Basic authentication over HTTPS
> 2) OAuth
>
> I don't want to do basic authentication over HTTPS with a username and 
> password, because in the Android app, I have it setup to store a username 
> and token via the AccountManager (they seem to have taken down reference to 
> the code on Android's site; my implementation is very similar the sample 
> code that ships with the SDK: *
> android-sdk-linux/samples/android-17/SampleSyncAdapter* except I'm not 
> using any of the Sync features).
>
> I don't want to use OAuth because I am not sure we can count on users to 
> have accounts with Google or some other third-party OAuth provider.
>
> This is my first round at implementing web authentication; from what I'm 
> reading, the steps go something like this:
> - [Service] Administrator creates an account with a username and a 
> generated strong code is stored temporarily in the user record; emailed to 
> user
> - [App] User selects account and enters username and code, plus password 
> of their choice, into the form
> - [App] Basic authentication over HTTPS sends over username, code, and 
> password (just this once)
> - [Service] Stores random salt and password hash in the user record, and 
> the generated token (a)
> - [Service] Replies back to App with the token
> - [App] Username and token is stored via AccountManager
>
> Then,
> - [App] User sends username and token to service (b)
> - [Service] *authenticates* the user if the token matches and is not 
> expired (c)
> - [App] User can access the various REST API calls (d)
>
> In this way, the password is never stored on the Android device or in the 
> database.  When the token expires, then User re-enters password.  The User 
> can request a password reset, which generates a strong code again and the 
> process starts from the top.
>
> My questions (referenced above) are:
> (a) Should the generated token be stored on the user record, or in a 
> separate table?  My thinking for a separate table/collection would be to 
> have a background process that could remove expired tokens; keeping this 
> information separate from the user record; or perhaps a user could have a 
> valid reason to have multiple different tokens (one on the phone, another 
> on the tablet).
> (b) Is this simply done through basic authentication over HTTPS, sending 
> the username and token (in place of password)?
> (c) I've seen examples of node.js code setting values on request.session; 
> effectively, marking the session as authenticated.  Is this specific to 
> browsers/cookies and/or does it work when communicating to Android?
> (d) Kind of an extension of (c), does the username/token have to be sent 
> every time, or can I reference something like the 
> request.session.authorized value?
>
> Also:
> - Does anyone know of a good working example of a node.js REST API 
> implementation for an Android app?  Sometimes it's easier to just learn 
> from code.
> - Is there working example code of the node dependencies I see referenced 
> everywhere (everyauth, connect-auth, passport) being used with an Android 
> app?  Most seem to implement OAuth solutions.
> - Any security/implementation pitfalls with this approach?
>
> References:
> * [The Definitive Guide to Forms-based Website Authentication](
> http://stackoverflow.com/a/477578/172217)
> * [Designing a Secure REST (Web) API without OAuth](
> http://www.thebuzzmedia.com/designing-a-secure-rest-api-without-oauth-authentication/
> )
> * [How to Implement a Secure REST API with node.js](
> http://stackoverflow.com/a/15500784/172217)
> * [RESTful Authentication](http://stackoverflow.com/a/7158864/172217)
> * [Securing my node.js App REST API](
> http://stackoverflow.com/a/9126126/172217)
> * [Connect Session Middleware](
> http://www.senchalabs.org/connect/session.html)
> * [Secure Salted Password Hashing](
> http://crackstation.net/hashing-security.htm)
>

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