I'm working through some similar thought experiments regarding my own QooxDoo
app.

There are other solutions to the MITM problem besides PKC. For example, you
could use an authentication scheme based on zero-knowledge proofs, such as
SRP (RFC 5054). These methods never involve transmission of the password
itself; they only require transmission of a proof that the client knows the
password.

This library implements SRP in JavaScript:

 
http://server.denksoft.com/wordpress/web-development/secure-ajax-channel-srp-hermetic/

Whether it's worth it to do this kind of thing depends not only on the
application's inherent security requirements, but on proper analysis of
other potential weak links -- e.g., can the JavaScript code running in the
end-user's browser actually be trusted? If not, then using fancy
authentication won't get you any additional security.

Similarly, as a practical matter, many https-based authentication schemes
are rendered trivially hackable by password reset mechanisms that require
knowledge easily obtainable via social engineering or simple Facebook
trolling, like "mother's maiden name", "name of pet", etc. Not to mention
the prevalence of user passwords like "123456"...

Dave

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