One of the most common struggles people face in the digital age is managingtheir passwords. With the endless number of websites and online accounts thatrequire a unique login, it becomes way more difficult to remember all thedifferent passwords. A solution that has emerged to keep track of passwords inthe online world are password managers.
Problems with password managers
Password managers, such as Dashlane, LastPass, and 1Password, are tools thathelp people to create and manage unique passwords for their online accounts.These software and services offer a single and encrypted location where youcan store all your login credentials. Having a digital vault remember yourpasswords may seem like a blessing, but there are multiple problems withpasswords managers. Here are some of the major ones:
Problem 1: Low user adoption rates
One major problem with password managers is that they require users to installthe software on every device they use, add their credentials to the passwordmanager, and ensure that everything is properly synced. This can be acumbersome task for many people, leading to low user adoption rates of around20%. This low adoption rate is a problem for companies that rely on passwordmanagers for authentication, as it means that many of their users are stillusing weak, easily guessable passwords or reusing the same password acrossmultiple accounts.
Problem 2: Vulnerability to attacks
Additionally, password managers are often targeted by hackers. The recentsecurity incident at LastPass is just one example of this. While passwordmanagers do offer some protection against password-based attacks, they arestill vulnerable to other types of attacks, such as phishing or malware. If apassword manager's database is compromised, all the user's passwords are atrisk of being exposed.
Problem 3: Passwordless future
The business model of password managers relies on people continuing to usepasswords as the primary method of authentication for their online accounts.However, as online security continues to improve, the way we log in towebsites and online accounts is also evolving. More and more websites andservices are moving towards passwordless authentication methods, whicheliminate the need for passwords. These methods use biometric data or otherunique characteristics to verify a user's identity, such as one-time codessent via text or email. As these technologies become more widespread, it'slikely that we'll see even more websites and services adopting passwordlessauthentication in the future.
Passkeys as the solution
Passkeys as the new authentication standard offer comprehensive solutions tothe above-mentioned problems of password managers. Using biometric login likeFace ID, Touch ID and Windows Hello, they create a simple and convenientsolution that will boost adoption and never require a password again. Also,passkeys are the most secure authentication method since they rely on public-key cryptography, where a private key is stored on the users passkey deviceand a public key is stored on a dedicated server. Because the private keynever leaves the passkey device it is highly secure and resistant to anycybercriminal. Lastly, passkeys are already prepared for a passwordless futureas they rely on a technology that works completely without passwords, whilealso creating a promising business model.
The recent acquisition of Passage by 1Password shows that password managersare about to strengthen their passwordless capabilities in the passkeys area.Still, it is important to note that they require customers to install theirsoftware. This means that users must take the time to download and set up thepassword manager on all of their devices as well as requiring their users toremember a master password.
Corbado helps you to move towards the passwordless future and integratepasskeys
Instead of relying the burden of going passwordless to the users andrequiring them to install additional software, SaaS and e-commerce companiesshould take responsibility for implementing passwordless authentication. Byoffering passkeys as a central authentication method, companies can simplifythe login process for their users and increase security by eliminating theneed for passwords.
At Corbado, we are working on passwordless and passkey-centered authenticationsolutions that prioritize user experience. Our solution is designed to be easyto integrate and convenient for the user, while also providing strong securityagainst cyber threats.
