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.

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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

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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

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Core Principle

"If there is no secret, there is nothing to steal."

Wallet signature replaces the entire legacy authentication stack.

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