12.1 Password-Based Authentication
What PTERI replaces — and why it is no longer needed
This section compares PTERI with legacy and modern alternatives, and explains which systems become obsolete once cryptographic authority is the foundation.
PTERI does not coexist with multiple trust models.
It collapses them into one.
Legacy Model vs PTERI
| Category | Traditional Model | Problems | PTERI Replacement |
|---|---|---|---|
| Authentication | Passwords stored or hashed on servers | Phishing, credential reuse | No passwords |
| Account Recovery | Email or SMS-based recovery | Recovery channels can be hijacked (SIM swap, email compromise) | No recovery secrets |
| Multi-Factor Authentication | MFA layered on top as a patch | Adds complexity, still relies on shared secrets | No MFA add-ons |
| Credential Storage | Centralized databases of credentials | Database breach exposure | No credential databases |
| Operational Complexity | Multiple systems layered together | Complex recovery flows, high operational overhead | Single wallet signature primitive |
What Changes Fundamentally
| Legacy Assumption | In PTERI |
|---|---|
| Secrets must be stored | No secrets stored on servers |
| Credentials prove identity | Cryptographic signature proves identity |
| Authentication is layered | Authentication is native to the primitive |
| More layers = more security | Fewer trust surfaces = stronger security |
Core Principle
"If there is no secret, there is nothing to steal."
Wallet signature replaces the entire legacy authentication stack.