What's the difference between OpenID and OAuth? - authentication

I'm really trying to understand the difference between OpenID and OAuth? Maybe they're two totally separate things?

OpenID is about authentication (ie. proving who you are), OAuth is about authorisation (ie. to grant access to functionality/data/etc.. without having to deal with the original authentication).
OAuth could be used in external partner sites to allow access to protected data without them having to re-authenticate a user.
The blog post "OpenID versus OAuth from the user’s perspective" has a simple comparison of the two from the user's perspective and "OAuth-OpenID: You’re Barking Up the Wrong Tree if you Think They’re the Same Thing" has more information about it.

There are three ways to compare OAuth and OpenID:
1. Purposes
OpenID was created for federated authentication, that is, letting a third-party authenticate your users for you, by using accounts they already have. The term federated is critical here because the whole point of OpenID is that any provider can be used (with the exception of white-lists). You don't need to pre-choose or negotiate a deal with the providers to allow users to use any other account they have.
OAuth was created to remove the need for users to share their passwords with third-party applications. It actually started as a way to solve an OpenID problem: if you support OpenID on your site, you can't use HTTP Basic credentials (username and password) to provide an API because the users don't have a password on your site.
The problem is with this separation of OpenID for authentication and OAuth for authorization is that both protocols can accomplish many of the same things. They each provide a different set of features which are desired by different implementations but essentially, they are pretty interchangeable. At their core, both protocols are an assertion verification method (OpenID is limited to the 'this is who I am' assertion, while OAuth provides an 'access token' that can be exchanged for any supported assertion via an API).
2. Features
Both protocols provide a way for a site to redirect a user somewhere else and come back with a verifiable assertion. OpenID provides an identity assertion while OAuth is more generic in the form of an access token which can then be used to "ask the OAuth provider questions". However, they each support different features:
OpenID - the most important feature of OpenID is its discovery process. OpenID does not require hard coding each the providers you want to use ahead of time. Using discovery, the user can choose any third-party provider they want to authenticate. This discovery feature has also caused most of OpenID's problems because the way it is implemented is by using HTTP URIs as identifiers which most web users just don't get. Other features OpenID has is its support for ad-hoc client registration using a DH exchange, immediate mode for optimized end-user experience, and a way to verify assertions without making another round-trip to the provider.
OAuth - the most important feature of OAuth is the access token which provides a long lasting method of making additional requests. Unlike OpenID, OAuth does not end with authentication but provides an access token to gain access to additional resources provided by the same third-party service. However, since OAuth does not support discovery, it requires pre-selecting and hard-coding the providers you decide to use. A user visiting your site cannot use any identifier, only those pre-selected by you. Also, OAuth does not have a concept of identity so using it for login means either adding a custom parameter (as done by Twitter) or making another API call to get the currently "logged in" user.
3. Technical Implementations
The two protocols share a common architecture in using redirection to obtain user authorization. In OAuth the user authorizes access to their protected resources and in OpenID, to their identity. But that's all they share.
Each protocol has a different way of calculating a signature used to verify the authenticity of the request or response, and each has different registration requirements.

OpenID is (mainly) for identification/authentication, so that stackoverflow.com knows that I own chris.boyle.name (or wherever) and therefore that I am probably the same person who owned chris.boyle.name yesterday and earned some reputation points.
OAuth is designed for authorization to take actions on your behalf, so that stackoverflow.com (or wherever) can ask permission to, say, Tweet on your behalf automatically, without knowing your Twitter password.

Many people still visit this so here's a very simple diagram to explain it
Courtesy Wikipedia

OAuth
Used for delegated authorization only -- meaning you are authorizing a third-party service access to use personal data, without giving out a password. Also OAuth "sessions" generally live longer than user sessions. Meaning that OAuth is designed to allow authorization
i.e. Flickr uses OAuth to allow third-party services to post and edit a persons picture on their behalf, without them having to give out their flicker username and password.
OpenID
Used to authenticate single sign-on identity. All OpenID is supposed to do is allow an OpenID provider to prove that you say you are. However many sites use identity authentication to provide authorization (however the two can be separated out)
i.e. One shows their passport at the airport to authenticate (or prove) the person's who's name is on the ticket they are using is them.

OpenID is an open standard and decentralized authentication protocol controlled by the OpenID Foundation.
OAuth is an open standard for access delegation.
OpenID Connect (OIDC) Combines the features of OpenID and OAuth i.e. does both Authentication and Authorization.
OpenID take the form of a unique URI managed by some "OpenID provider" i.e identity provider (idP).
OAuth can be used in conjunction with XACML where OAuth is used for ownership consent and access delegation whereas XACML is used to define the authorization policies.
OIDC uses simple JSON Web Tokens (JWT), which you can obtain using flows conforming to the OAuth 2.0 specifications. OAuth is directly related to OIDC since OIDC is an authentication layer built on top of OAuth 2.0.
For example, if you chose to sign in to Auth0 using your Google account then you used OIDC. Once you successfully authenticate with Google and authorize Auth0 to access your information, Google will send back to Auth0 information about the user and the authentication performed. This information is returned in a JSON Web Token (JWT). You'll receive an Access Token and, if requested, an ID Token. Types of Token : Source: OpenID Connect
Analogy:
An organisation use ID card for identification purpose and it contains chips, it stores details about Employee along with Authorization i.e. Campus/Gate/ODC access. ID card act as a OIDC and Chip act as a OAuth. more examples and form wiki

Use OAuth if your users might just want to login with Facebook, or Twitter. Use OpenID if your users are neckbeards that run their own OpenID providers because they "don't want anyone else owning their identity".

The explanation of the difference between OpenID, OAuth, OpenID Connect:
OpenID is a protocol for authentication while OAuth is for
authorization. Authentication is about making sure that the guy you
are talking to is indeed who he claims to be. Authorization is about
deciding what that guy should be allowed to do.
In OpenID, authentication is delegated: server A wants to authenticate
user U, but U's credentials (e.g. U's name and password) are sent to
another server, B, that A trusts (at least, trusts for authenticating
users). Indeed, server B makes sure that U is indeed U, and then tells
to A: "ok, that's the genuine U".
In OAuth, authorization is delegated: entity A obtains from entity B
an "access right" which A can show to server S to be granted access; B
can thus deliver temporary, specific access keys to A without giving
them too much power. You can imagine an OAuth server as the key master
in a big hotel; he gives to employees keys which open the doors of the
rooms that they are supposed to enter, but each key is limited (it
does not give access to all rooms); furthermore, the keys
self-destruct after a few hours.
To some extent, authorization can be abused into some
pseudo-authentication, on the basis that if entity A obtains from B an
access key through OAuth, and shows it to server S, then server S may
infer that B authenticated A before granting the access key. So some
people use OAuth where they should be using OpenID. This schema may or
may not be enlightening; but I think this pseudo-authentication is
more confusing than anything. OpenID Connect does just that: it abuses
OAuth into an authentication protocol. In the hotel analogy: if I
encounter a purported employee and that person shows me that he has a
key which opens my room, then I suppose that this is a true employee,
on the basis that the key master would not have given him a key which
opens my room if he was not.
(source)
How is OpenID Connect different than OpenID 2.0?
OpenID Connect performs many of the same tasks as OpenID 2.0, but does
so in a way that is API-friendly, and usable by native and mobile
applications. OpenID Connect defines optional mechanisms for robust
signing and encryption. Whereas integration of OAuth 1.0a and OpenID
2.0 required an extension, in OpenID Connect, OAuth 2.0 capabilities are integrated with the protocol itself.
(source)
OpenID connect will give you an access token plus an id token. The id
token is a JWT and contains information about the authenticated user.
It is signed by the identity provider and can be read and verified
without accessing the identity provider.
In addition, OpenID connect standardizes quite a couple things that
oauth2 leaves up to choice. for instance scopes, endpoint discovery,
and dynamic registration of clients.
This makes it easier to write code that lets the user choose between
multiple identity providers.
(source)
Google's OAuth 2.0
Google's OAuth 2.0 APIs can be used for both authentication and
authorization. This document describes our OAuth 2.0 implementation
for authentication, which conforms to the OpenID Connect
specification, and is OpenID Certified. The documentation found in
Using OAuth 2.0 to Access Google APIs also applies to this service. If
you want to explore this protocol interactively, we recommend the
Google OAuth 2.0 Playground.
(source)

OpenID and OAuth are each HTTP-based protocols for authentication and/or authorization. Both are intended to allow users to perform actions without giving authentication credentials or blanket permissions to clients or third parties. While they are similar, and there are proposed standards to use them both together, they are separate protocols.
OpenID is intended for federated authentication. A client accepts an identity assertion from any provider (although clients are free to whitelist or blacklist providers).
OAuth is intended for delegated authorization. A client registers with a provider, which provides authorization tokens which it will accept to perform actions on the user's behalf.
OAuth is currently better suited for authorization, because further interactions after authentication are built into the protocol, but both protocols are evolving. OpenID and its extensions could be used for authorization, and OAuth can be used for authentication, which can be thought of as a no-op authorization.

I believe it makes sense revisit this question as also pointed out in the comments, the introduction of OpenID Connect may have brought more confusion.
OpenID Connect is an authentication protocol like OpenID 1.0/2.0 but it is actually built on top of OAuth 2.0, so you'll get authorization features along with authentication features. The difference between the two is pretty well explained in detail in this (relatively recent, but important) article: http://oauth.net/articles/authentication/

More an extension to the question than an answer, but it may add some perspective to the great technical answers above. I'm an experienced programmer in a number of areas, but a total noob to programming for the web. Now trying to build a web-based application using Zend Framework.
Definitely will implement an application-specific basic username/password authentication interface, but recognize that for a growing number of users the thought of yet another username and password is a deterrent. While not exactly social networking, I know that a very large percentage of the application's potential users already have facebook or twitter accounts. The application doesn't really want or need to access information about the user's account from those sites, it just wants to offer the convenience of not requiring the user to set up new account credentials if they don't want to. From a functionality point of view, that would seem a poster child for OpenID. But it seems that neither facebook nor twitter are OpenID providers as such, though they do support OAuth authentication to access their user's data.
In all the articles I've read about the two and how they differ, it wan't until I saw Karl Anderson's observation above, that "OAuth can be used for authentication, which can be thought of as a no-op authorization" that I saw any explicit confirmation that OAuth was good enough for what I wanted to do.
In fact, when I went to post this "answer", not being a member at the time, I looked long and hard at the bottom of this page at the options for identifying myself. The option for using an OpenID login or obtaining one if I didn't have one, but nothing about twitter or facebook, seemed to suggest that OAuth wasn't adequate for the job. But then I opened another window and looked for the general signup process for stackoverflow - and lo and behold there's a slew of 3rd-party authentication options including facebook and twitter. In the end I decided to use my google id (which is an OpenID) for exactly the reason that I didn't want to grant stackoverflow access to my friends list and anything else facebook likes to share about its users - but at least it's a proof point that OAuth is adequate for the use I had in mind.
It would really be great if someone could either post info or pointers to info about supporting this kind of multiple 3rd-part authorization setup, and how you deal with users that revoke authorization or lose access to their 3rd party site. I also get the impression that my username here identifies a unique stackoverflow account that I could access with basic authentication if I wanted to set it up, and also access this same account through other 3rd-party authenticators (e.g. so that I would be considered logged in to stackoverflow if I was logged in to any of google, facebook, or twitter...). Since this site is doing it, somebody here probably has some pretty good insight on the subject. :-)
Sorry this was so long, and more a question than an answer - but Karl's remark made it seem like the most appropriate place to post amidst the volume of threads on OAuth and OpenID. If there's a better place for this that I didn't find, I apologize in advance, I did try.

After reading and doing some work, I figured the things I needed to know, these are: OpenID Connect, OAuth, JWT and SAML.
I will give a summary, it might help someone:
OpenID Connect (OIDC): If we can login a website using google account, then you are using OIDC.
OAuth: an application wants to access my facebook contact list and do some stuff on my behalf. If I authorise this application, then probably I am using OAuth.
JWT: OAuth uses JWT, JWT (JSON Web Tokens)- It is just a token format. JWT tokens are JSON encoded data structures contains information about issuer, subject (claims), expiration time etc. It is signed for tamper proof and authenticity and it can be encrypted to protect the token information using symmetric or asymmetric approach. JWT is simpler than SAML 1.1/2.0 and supported by all devices and it is more powerful than SWT(Simple Web Token).
Authorization flow in OAuth:
OAuth 2.0 protocol provides several workflows for authorizing a user and obtaining an access token. It depends on the type and architecture of the client which flow is the most suitable.
Below are 2 most used Authorizations flows:
Authorization Code: Suitable for third-party websites which contain a client and a server component.
The user enters credentials to a secure login webpage.
After logging in, the browser is redirected to a special URL (defined by the client), passing an authorization code in the URL.
The third-party server obtains the access token with another HTTP request in the background, using the authorization code.
From https://developers.video.ibm.com/api-basics-authentication/
Note: if you have a frontend application and the server sets a cookie in the browser, then you already have the cookie in your browser and can accees the website.
Client Credentials: Best choice for users developing server-side applications to manage their content or settings.
IBM has a good guide here: https://developers.video.ibm.com/api-basics-authentication
To know all other flows with pros and cons: here: https://www.geeksforgeeks.org/workflow-of-oauth-2-0/
SAML: Also used as an alternative of openid, but it is xml based. because developers find OIDC much easier to work with and because it is more flexible (e.g. working with mobile app is easier than xml based SAML), OIDC looks like it will become the winner.
OpenID Connect (OIDC) vs SAML: there are main differences:
SAML transmits user data in XML format. OIDC transmits user data in JSON format.
SAML calls the user data it sends a SAML Assertion. OIDC calls the
data Claims.
SAML calls the application or system the user is trying to get into
the Service Provider. OIDC calls it the Relying Party.
SAML is old, has more features, but OpenID is gaining more popularity as it is easier to implement, easier to use than XML based SAML
But not all identity providers support OpenID or SAML, if the identity provider you want to integrate only supports SAML, then you have no choice.
Want more OpenID vs SAML? read below:
https://www.onelogin.com/blog/real-difference-saml-oidc
https://auth0.com/intro-to-iam/saml-vs-openid-connect-oidc/
Want more? You can read this OAuth and OpenID analogy:
http://cakebaker.42dh.com/2008/04/01/openid-versus-oauth-from-the-users-perspective/

OpenID proves who you are.
OAuth grants access to the features provided by the authorizing party.

I am currently working on OAuth 2.0 and OpenID connect spec. So here is my understanding:
Earlier they were:
OpenID was proprietary implementation of Google allowing third party applications like for newspaper websites you can login using google and comment on an article and so on other usecases. So essentially, no password sharing to newspaper website. Let me put up a definition here, this approach in enterprise approach is called Federation. In Federation, You have a server where you authenticate and authorize (called IDP, Identity Provider) and generally the keeper of User credentials. the client application where you have business is called SP or Service Provider. If we go back to same newspaper website example then newspaper website is SP here and Google is IDP. In enterprise this problem was earlier solved using SAML. that time XML used to rule the software industry. So from webservices to configuration, everything used to go to XML so we have SAML, a complete Federation protocol
OAuth: OAuth saw it's emergence as an standard looking at all these kind of proprietary approaches and so we had OAuth 1.o as standard but addressing only authorization. Not many people noticed but it kind of started picking up. Then we had OAuth 2.0 in 2012. CTOs, Architects really started paying attention as world is moving towards Cloud computing and with computing devices moving towards mobile and other such devices. OAuth kind of looked upon as solving major problem where software customers might give IDP Service to one company and have many services from different vendors like salesforce, SAP, etc. So integration here really looks like federation scenario bit one big problem, using SAML is costly so let's explore OAuth 2.o. Ohh, missed one important point that during this time, Google sensed that OAuth actually doesn't address Authentication, how will IDP give user data to SP (which is actually wonderfully addressed in SAML) and with other loose ends like:
a. OAuth 2.o doesn't clearly say, how client registration will happen
b. it doesn't mention anything about the interaction between SP (Resource Server) and client application (like Analytics Server providing data is Resource Server and application displaying that data is Client)
There are already wonderful answers given here technically, I thought of giving of giving brief evolution perspective

Nowadays OpenID connect is most relevant so I will explain the difference between OpenID connect and OAuth 2.
OpenID connect specifies the IDToken standard: https://openid.net/specs/openid-connect-core-1_0.html#IDToken
This is the primary contribution of OpenID connect. So it specifies what should be contained in the response after authentication is complete.
The IDToken needs to be a JWT token, and contains information of the user, such as user id, user name, etc. The information returned depends on the claims passed when authorizing. It also contains an expiration date of the token and it should contain the digital signature of the token. This signature is used to validate the token using a public key.
The second big difference is related to the public key. OpenID connect uses something called discovery or well known endpoint. It's an endpoint that is publicly open and just returns a JSON with values such as the public key and authorization endpoints.
https://openid.net/specs/openid-connect-core-1_0.html#SelfIssuedDiscovery
So essentially OpenID is related to authentication since it specifies the IDToken, which is necessary to authenticate a user by checking the digital signature and expiration date of the IDToken.
OAuth deals with authorization especially related to scopes and validating access tokens on the resource server.
However as written here, OpenID uses OAuth 2 authorization for authentication.
https://openid.net/specs/openid-connect-core-1_0.html#AuthRequest
An Authentication Request is an OAuth 2.0 Authorization Request that requests that the End-User be authenticated by the Authorization Server.
In short, try to think of OpenID as authentication using the JWT token and OAuth as authorization with scopes.

I'd like to address a particular aspect of this question, as captured in this comment:
OAuth: before granting access to some feature, authentication must be done, right ?. so OAuth = what OpenId does + grants access to some features ? – Hassan Makarov Jun 21 at 1:57
Yes... and no. The answer is subtle, so bear with me.
When the OAuth flow redirects you to a target service (the OAuth provider, that is), it is likely that you'll need to authenticate with that service before a token will be handed back to the client application/service. The resulting token then allows the client app to make requests on behalf of a given user.
Note the generality of that last sentence: specifically, I wrote "on behalf of a given user", not "on behalf of you". It's a common error to assume that "having a capability to interact with a resource owned by a given user" implies "you and the owner of the target resource(s) are one in the same".
Don't make this mistake.
While it's true that you authenticate with the OAuth provider (say, by user name and password, or maybe SSL client certs, or some other means), what the client gets in return should not necessarily be taken as proof of identity. An example would be a flow in which access to another user's resources was delegated to you (and by proxy, the OAuth client). Authorization does not imply authentication.
To handle authentication, you'll likely want to look into OpenID Connect, which is essentially another layer on top of the foundation set by OAuth 2.0. Here's a quote that captures (in my opinion) the most salient points regarding OpenID Connect (from https://oauth.net/articles/authentication/):
OpenID Connect is an open standard published in early 2014 that defines an interoperable way to use OAuth 2.0 to perform user authentication. In essence, it is a widely published recipe for chocolate fudge that has been tried and tested by a wide number and variety of experts. Instead of building a different protocol to each potential identity provider, an application can speak one protocol to as many providers as they want to work with. Since it's an open standard, OpenID Connect can be implemented by anyone without restriction or intellectual property concerns.
OpenID Connect is built directly on OAuth 2.0 and in most cases is deployed right along with (or on top of) an OAuth infrastructure. OpenID Connect also uses the JSON Object Signing And Encryption (JOSE) suite of specifications for carrying signed and encrypted information around in different places. In fact, an OAuth 2.0 deployment with JOSE capabilities is already a long way to defining a fully compliant OpenID Connect system, and the delta between the two is relatively small. But that delta makes a big difference, and OpenID Connect manages to avoid many of the pitfalls discussed above by adding several key components to the OAuth base: [...]
The document then goes on to describe (among other things) token IDs and a UserInfo endpoint. The former provides a set of claims (who you are, when the token was issued, etc, and possibly a signature to verify the authenticity of the token via a published public key without having to ask the upstream service), and the latter provides a means of e.g. asking for the user's first/last name, email, and similar bits of info, all in a standardized way (as opposed to the ad-hoc extensions to OAuth that people used before OpenID Connect standardized things).

Both protocols were created for different reasons. OAuth was created to authorize third parties to access resources. OpenID was created to perform decentralize identity validation. This website states the following:
OAuth is a protocol designed to verify the identity of an end-user and to grant permissions to a third party. This verification results in a token. The third party can use this token to access resources on the user’s behalf. Tokens have a scope. The scope is used to verify whether a resource is accessible to a user, or not
OpenID is a protocol used for decentralised authentication. Authentication is about identity; Establishing the user is in fact the person who he claims to be. Decentralising that, means this service is unaware of the existence of any resources or applications that need to be protected. That’s the key difference between OAuth and OpenID.

OAuth gives you back the access token to access the resource from resource server, OpenID gives you back meta data details about resources in JWT / encrypted token

OpenId uses OAuth to deal with authentication.
By analogy, it's like .NET relies on Windows API. You could directly call Windows API but it's so wide, complex and method arguments so vast, you could easily make mistakes/bugs/security issue.
Same with OpenId/OAuth. OpenId relies on OAuth to manage Authentication but defining a specific Token (Id_token), digital signature and particular flows.

OpenId - Used only for Authentication.
OAuth - Used for both Authentication and Authorization. Authorization depends on the access_token which comes as part of JWT token. It can have details of user permissions or any useful information.
Both can rely on 3rd party auth provider which maintains their accounts. For example OKTA identity provider, User provides the credentials on OKTA login page and on successful login the user is redirected on the consumer application with the JWT token in the header.

OAuth 2.0 is a Security protocol. It is NEITHER an Authentication NOR an Authorization protocol.
Authentication by definition the answers two questions.
Who is the user?
Is the user currently present on the system?
OAuth 2.0 has the following grant types
client_credentials: When one app needs to interact with another app and modify the data of multiple users.
authorization_code: User delegates the Authorization server to issue an access_token that the client can use to access protected resource
refresh_token: When the access_token expires, the refresh token can be leveraged to get a fresh access_token
password: User provides their login credentials to a client that calls the Authorization server and receives an access_token
All 4 have one thing in common, access_token, an artifact that can be used to access protected resource.
The access_token does not provide the answer to the 2 questions that an "Authentication" protocol must answer.
An example to explain Oauth 2.0 (credits: OAuth 2 in Action, Manning publications)
Let's talk about chocolate. We can make many confections out of chocolate including, fudge, ice cream, and cake. But, none of these can be equated to chocolate because multiple other ingredients such as cream and bread are needed to make the confection, even though chocolate sounds like the main ingredient. Similarly, OAuth 2.0 is the chocolate, and cookies, TLS infrastucture, Identity Providers are other ingredients that are required to provide the "Authentication" functionality.
If you want Authentication, you may go for OpenID Connect, which provides an "id_token", apart from an access_token, that answers the questions that every authentication protocol must answer.

OAuth builds authentication on top of authorization: The user delegates access to their identity to the application, which, then, becomes a consumer of the identity API, thereby finding out who authorized the client in the first place http://oauth.net/articles/authentication/

Related

Using OpenId Connect for securing API

I have several REST APIs which I want to secure with a federated authorization server. This page: https://oauth.net/articles/authentication/ suggests that OAuth2 alone is not enough for authentication and one should use the OpenId Connect extension to get it right.
However, I have the feeling that what OIDC does is only defining an identity endpoint and the related scopes and claims. If I don't specifically need these identity claims, what's wrong with using plain OAuth authorization code for authenticating a user and protecting resource? Or is OAuth2 only for delegating access to a client app which works on behalf of the user (which is not my use cas)?
Thanks for the inputs!
Most end user authentication related work occurs on the UI side of things, and of course involves Authorization Redirects, Identity Providers, Consent Forms and so on.
In terms of the code for a Secured REST API you instead perform the following types of action. This is primarily OAuth 2.0 behaviour as you say, though Open Id Connect endpoints can be useful:
Validate received access tokens from the Authorization Server
Read token claims to identify the authenticated user
To do this you may need to download token signing keys from the JWKS endpoint
Your API can look up further details from the User Info endpoint
Your API can use the metadata endpoint to get the above endpoint locations
Your API will then apply authorization rules based on claims and scopes
OAuth is an authorization framework. Before OpenID Connect, some organizations were increasingly using OAuth as an authentication mechanism just as you stated in your question. While this is technically possible, it is rife with inconsistencies between one implementation to the next. The standardization of this method came around with OpenID Connect, where this group of vendors essentially said let's come up with a standardized approach to what we have been doing. The benefits of a standardized approach is collaboration, security, etc. The openid scope of OAuth was born.

Do I not need to secure my API endpoints (resources) with OAuth 2 access tokens?

There are multiple partied involved in OAuth2 conversation. Consider the
following diagram from the article here
Consider that I have an application that has data for restaurants and has APIs related to it. Let's call is restaurants APIs. Let us assign some role to each party in context of this example
User - our chefs, who have some recipes in restaurant
Application - Web client written in HTML5, JS, CSS that our Users use to interact with APIs
OAuth Endpoint - Google (who acts as Authorization Server)
API - My application API keeping all data for chefs
The workflow for Implicit (as per above diagram in the link) states the Application gets the access token and then the Application(browser) calls API (my application with chefs recipes) and gets the data back.
Questions
Shouldn't I secure my application endpoints or rather just believe the accesssTokens? Yes, the trust is established between Application and OAuth Endpoint (Google), but there is no trust developed API and Application by confirming the validity of accessToken with OAuth Endpoint (Google)?
If I should secure my application API endpoints, shall I have a /login endpoint for my APIs where my application accepts accessTokens, validate and create a JWT based headers for clients to use for further communication with protected resources like /recipes.
Looking forward to your ideas here.
Thanks in advance
TL;DR - don't blindly trust the access tokens. Ask Google to reveal the user/email associated with them and the client ID that was used when generating them. You can still provide a /login endpoint for scalability purposes mostly.
Let's deal with the core security first
OAuth is a delegation protocol, not an authentication protocol. To quote from the OAuth website:
The OAuth 2.0 specification defines a delegation protocol [...] OAuth is used in a wide variety of applications, including providing mechanisms for user authentication. [...] Let's say that again, to be clear:
OAuth 2.0 is not an authentication protocol.
Because it's not an authentication protocol, your app/API never learns who the user is. It just gets a token. Delegation in this context means that OAuth lets App A request access to resources in App B that belong to a User, by having the User authenticate to App B and then passing the token back to App A. In your example, it can provide your web app with access to Google resources (email, photos, etc. - depending on the required scopes) that are owned by the Users (chefs).
Note that this isn't what you are doing here, since you're accessing resources managed by your app, not by Google. In particular, as you correctly identified, the access token means nothing to your API. I could just as well give it a random string.
You might be tempted to use the following scheme:
Implement the implicit scheme as described in your question.
Have the API server validate the access token with Google, and ask Google for the name or email associated with the token. This will be the identity of the user who actually logged in to Google, and you can then decide whether or not to grant permission to that user.
The problem with this approach is that many apps use OAuth with Google, and so many apps will have Google access tokens that don't belong you app. How can you tell the difference?
You can ask Google, when you present it with the access token, to also provide you with the client ID that was provided when this token was generated (see how your diagram indicates that the client ID is sent?). Since that client ID uniquely identifies your app, then your API can tell that it's been given tokens that only came from your app. Note that this critical part of the OAuth flow is very different in mobile apps which is why the implicit flow should not be used with mobile apps (but it's fine with web apps).
Note that your client ID should be considered common knowledge (e.g. it's found in the .js files on the machines performing this flow), but it cannot be spoofed because as part of the OAuth flow, the user's browser will be redirected to a URL that is pre-configured in Google and belongs to your app. So even if a malicious app uses your client ID, Google will still send the token to your app.
Other practicalities
The above requires you to issue a call to Google on every API call, or at least cache the valid access tokens (which means you keep state, which is a bummer for scalability). If you want to avoid this, you can create a /login endpoint which generates a JWT. Note that you'll still need to validate the access tokens upon login.

What is the difference between OAuth based and Token based authentication?

I thought that OAuth is basically a token based authentication specification but most of the time frameworks act as if there is a difference between them. For example, as shown in the picture below Jhipster asks whether to use an OAuth based or a token based authentication.
Aren't these the same thing ? What exactly is the difference since both includes tokens in their implementations ?
This is a good question -- there is a lot of confusion around tokens and OAuth.
First up, when you mention OAuth, you are likely referring to the OAuth2 standard. This is the latest version of the OAuth protocol, and is what most people are specifically talking about when they say 'OAuth'.
The OAuth protocol supports several different types of authentication and authorization (4 to be precise).
Secondly, the OAuth protocol works by authenticating users via tokens. The idea here is this:
Instead of having your user send their actual credentials to your server on every single request (like they would with Basic Auth, where a user sends their username/password to the server for each request), with OAuth you first exchange your user credentials for a 'token', and then authenticate users based on this 'token'.
The idea of OAuth is that by requiring users to pass their confidential credentials over the network less frequently, less bad things can happen. (This is the idea, anyhow.)
Now, here's where tokens come into play: the OAuth spec is built around the concept of tokens, but DOES NOT SPECIFY WHAT A TOKEN IS.
In the most 'general' sense, a token is just a string that uniquely identifies a user. That's it.
People realized this, and developed a new standard for creating tokens, called the JSON Web Token standard. This standard basically provides a set of rules for creating tokens in a very specific way, which makes tokens more useful for you in general.
JWTs let you do things like:
Cryptographically sign a token so you know that a token wasn't tampered with by a user.
Encrypt tokens so the contents cannot be read in plain text.
Embed JSON data INSIDE of a token string in a standard way.
Now, for the most part: pretty much everyone in the development community has agreed that if you're using any sort of OAuth, then the tokens you're using should be JSON Web Tokens.
OK! Now that we've covered the backstory, let me answer your question.
The choice you're making above is whether or not you want to enable the full OAuth2 specification for authentication / authorization (which is quite complex), or whether you simply want some basic 'token authentication'.
Because the OAuth protocol provides multiple different ways to authenticate in a STANDARDS COMPLIANT way, it adds a lot of complexity to most authentication systems.
Because of this, a lot of frameworks offer a 'dumbed down' version of the OAuth2 Password Grant flow, which essentially is a simple method where:
A user sends their username/password to your server at some URL like /login.
Your server generates a JWT token for the user.
Your server returns that token to the user.
The user stores this token in their cookies, mobile device, or possible API server, where they use it to make requests.
Again: the flow above is NOT OAuth compliant, but is a slightly simpler version that STILL uses tokens.
The main point here is that tokens (JWTs) are generally useful, and don't NEED to be paired with the OAuth flow.
I realize this is a wall of text, but hopefully it answers your question in more depth =)
OAuth is a specification for authorization not authentication
OAuth 2.0 is a specification for authorization, but NOT for authentication. RFC 6749, 3.1. Authorization Endpoint explicitly says as follows:
The authorization endpoint is used to interact with the resource owner
and obtain an authorization grant. The authorization server MUST first
verify the identity of the resource owner. The way in which the
authorization server authenticates the resource owner (e.g., username
and password login, session cookies) is beyond the scope of this
specification.
Only use OAuth if you want to give access to a third party service to your apis. Even when you are using OAuth you would need some kind of authentication (token based or session based etc) to authenticate the uses. OAuth is not designed for authentication.
see this question.
When you are requesting resource from a secured web service, you can provide an authentication token on the call. The token acts as "secret code" for accessing the resource.
OAuth is just specific type of token based authentication method.

restful api authentication confusion with oauth2

I did some investigation about restful api authentication. Most people pointed to Oauth2 for restful api authentication. I looked into some of resouces, especially this link https://developers.google.com/accounts/docs/OAuth2.
It seems to me Oauth2 is for a third party app to access users' data in google/facebook(or other data provider).
Our problem is that we own the data, we don't need to access our client's any third party data and our clients don't have to any third party data. We want to protect our api with some sort of authentication.
For our case what is the convenient technologies for our restful api authentication ? We will expose our api like this
https://ourdomain.com/api/<endpoint>
Our clients can access a website first to register https://ourdomain.com and they should be able to get clientId and clientKey from our website for accessing apis. Our clients should be able to consume through some sort of authentication
In oAuth 2.0, there are several types of grant types. A grant type is just a way to exchange some sort of credentials for an access token. Typically oAuth refers to 3rd party usage with a Authorization Code Grant. This means redirecting the user to the resource owner's website for authentication, which will return back an Authorization Code.
This clearly doesn't make sense for 1st party oAuth use, since you ARE the resource owner. oAuth 2.0 has considered this and included the Resource Owner Password Credentials Grant for this purpose. In this case, you can exchange a username and password for an access token at the first party level.
See https://www.rfc-editor.org/rfc/rfc6749#section-4.3 for more details.
If I understand correctly, what you need it similar to OAuth in a way that you do the exact same thing minus granting a 3rd party app access to a user's resources.
In OAuth, there is a central system that manages authentication and authorization by checking an app's credentials + user's credentials and dishing out authorization tokens. There are multiple endpoints that will accept these authorization tokens.
The tokens are basically encrypted strings that contain info about the user's credentials and some other info that might be needed by your app.
What you need (i believe) is a similar authentication endpoint, that the client hits with its credentials and gets a token.
So,
i) Create a registration form/console where a client can register and get his credentials. Have a look at this.
ii) Define a HTTP endpoint where the user exchanges his credentials for an access token + refresh token.
iii) The client can hit the resource endpoint with the access tokens to make authenticated calls to any of your endpoint.
iv) At the back-end you'd need a common service that verifies the tokens and extracts info from it.
PS - This is just a minimal system, there would be a lot of security considerations like what if some unauthorized app gets access to some client's access tokens.
You can find much information about CSRF attacks, noonces, timestamps and other methods of mitigating security concerns.
Just to be clear with the original question:
OAuth2 needs at least a client and a server
OP was wondering how to secure a REST API, and why everyone is talking about third party authentication providers (Google, Facebook, ...)
There are 2 different needs here:
1 - Being able to secure a personal API (ourdomain.com)
Client Server
Consumers <----> Your API
2 - Being able to consume a public API (For example getting a user's Google contact list)
Client Server
You <----> Google APIs
OP actually needs the 1st: implement an OAuth2 server in front of its own API.
There are many existing implementations for all languages/frameworks on Github
Finally, here is one nice Oauth2 technical explanation, and I'm shamelessly taking one of its schemas here:
No I'm not working at Google, I'm just taking Google as a public API supplier example.

SAML vs federated login with OAuth

What's the difference between SAML and federated login with OAuth? Which solution makes more sense, if a company wants to use a third-party webapp, and but also wants single sign-on and be the authentication authority?
They solve different problems.
SAML is a set of standards that have been defined to share information about who a user is, what his set of attributes are, and give you a way to grant/deny access to something or even request authentication.
OAuth is more about delegating access to something. You are basically allowing someone to "act" as you. Its most commonly used to grant access api's that can do something on your behalf.
They are two completely different things.
Some examples that might help out.
OAuth think of an twitter. Lets say you are using Google Buzz and Twitter, and you want to write an app to be able to keep the two synchronised. You basically can establish trust between your app and twitter. First time you go to link the app to twitter, you do the classic prompt to log into twitter, and then that confirmation box pops up and asks "Would you like to grant access to «your app name»?" once you click "yes", the trust has been established, and now your app can act as you on Twitter. It can read your posts, as well as make new ones.
SAML - For SAML think of some type of "agreement" between two unrelated membership systems. In our case we can use US Airways and Hertz. There is no shared set of credentials that can take you from one site to another, but lets say Hertz wants to offer a "deal" to US Airways. (Granted I know this is an extreme example, but bear with me). After buying a flight, they will offer a free rental car to its Chairman members. US Airways and Hertz would setup some form of trust, and some way to identify the user. In our case our "federated id" would be the email address, and it would be a one way set of trust Hertz trusts that US Airways identity provider will deliver a token that is accurate and in a secure manner. After booking the flight US Airways identity provider would generate a token and populate how they have authenticated the user, as well as "attributes" about the person in our case the most important attribute would be his status level in US Airways. Once the token has been populated it passes it via some type of reference, or encoded in a url and once we get to Hertz, it looks at the token, validates it and now can allow for the free rental car.
The problem with this SAML example is it's only one specialized use case out of many. SAML is a standard and there are almost too many ways that you can implement it.
Alternatively, if you dont care about authorization, you could almost argue that asserting authentication via SAML and OpenID.
Have a look at this simple explanation summarized here:
Many people are confused about the differences between SAML, OpenID
and OAuth, but it’s actually very simple. Although there is some
overlap, here is a very simple way of distinguishing between the
three.
OpenID – single sign-on for consumers
SAML – single sign-on for enterprise users
OAuth – API authorization between applications
For folks comfortable with OO design patterns, I think there's a nice corollary to wrapper patterns. Think of Facade, Decorator and Proxy patterns. Fundamentally these are all the same, they're just wrappers... The difference is the intention of each pattern.
Similarly, SAML, OAuth and OpenID all facilitate different intentions via a common underlying mechanism, which is redirection to a service provider/identity authority for some private interaction, followed by redirection to the originating third party app.
Looking around on the net you will find overlap between the protocols' capabilities. Authentication via OAuth is perfectly reasonable. SSO over OAuth may not make a lot of sense though as SAML and OpenID are specifically geared towards federated identity.
To the question itself, in a corporate context SAML sounds more appropriate than OAuth for SSO. I'd bet if you look at the third party apps you'd like to integrate with your corporate identities, you'll find they're already designed to integrate with SAML/LDAP/Radius etc. IMO OAuth is more appropriate for Internet interaction between applications or perhaps applications comprising a Service Oriented Architecture in a large corporate environment.
Authorization rules may be specified in a corporate environment in other ways too. LDAP is a common tool for this. Organizing users into groups and associating application privileges against group membership is a widespread approach. Just so happens LDAP can be used for authentication too. Active Directory is a great example, though I prefer OpenLDAP.
Found Good article here
SAML (Security Assertion Markup Language) is set of standards to achieve Single Sign On (SSO), Federation and Identity Management.
Example : A user (principal) authenticates with a flight booking website, AirFlyer (identity provider) which has SSO configured via SAML with a shuttle booking website,Shuttler (service provider). Once authenticated to Flyer, the user can book shuttles on Shuttler without requiring authentication
OAuth (Open Authorization) is a standard for authorization of resources. It does not deal with authentication.
Example : A photo sharing mobile app (OAuth consumer) that allows users import photos from their Instagram account (OAuth provider) which sends a temporary access token or key to the photo sharing app that expires after some hours.
They handle a subtle use case
SAML - Sharing credential (e.g., SSO) of a user to various service providers (e.g., web or web service)
OAuth - A User delegating an App to access a resource on behalf of his/her
SAML has a variety of "profiles" to choose from allow other users to "log in" to your site. SAML-P or SAML Passive is very common and fairly simple to set up. WS-Trust is similar and it too allows for federation among websites.
OAuth is designed for authorization. You can read more here:
What's the difference between OpenID and OAuth?
SAML is for authentication - mainly used in Single Sign On scenario. OAuth is for authorization of resource representations.
JSON Web Token (JWT) is an alternative for SAML XML Tokens. JWT can be used with OAuth
A good reference is SAML vs. OAuth: Which One Should I Use?
The terms federation really means connection identities across systems. It's related to SSO but they aren't quite the same. I Found this blog post really helpful in terms of what federation really means.