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Daniel Root
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I get that Jeff's saying a browser standard and not a plugin like LastPass, but WRT @Christopher and some of the other "LastPass" posts: one of the nuances about LastPass is that it only stores encrypted copy of your password database in "the cloud". A local copy is downloaded to each device using it, and is accessible offline. So it supports "occasionally connected" scenarios, though obviously you can't sync up new passwords from other devices while offline. The encryption is AES256 I believe, so it should be good until quantum computers come out next year. ;)
Seriously, Jeff, look at LastPass if only for the technical details about what would be necessary to implement something like this. I'd love for it to be standard, better integrated into websites, and free-er, but it really follows the spirit of what you're saying here, I think.
Another kink in your plan is that _not only websites need passwords_. As a consultant, I have VPN passwords, AD accounts, 3rd party apps. Not to mention personally, I have PIN codes for bank cards, membership cards, etc. So, you're right that it all boils down to identity, but a full solution has to be bigger than a web browser.
Cutting the Gordian Knot of Web Identity
Perhaps you've seen this recent XKCD about password choice? It prompted a spirited debate – even on our very own Security Stack Exchange – about the merits of the argument presented there. Now, to be clear, I'm completely on Randall's side here; I'm all for passphrases over passwords, and I...
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