OneID Aims to Eliminate Usernames, Passwords in Favor of One-Click Logins

Having to remember passwords of several different Web sites is confusing and creates security problems, especially when users reuse the same password for many accounts. One startup, OneID, is trying to do away with passwords, replacing them securely with a system that lets users log in with one click, TechCrunch reports.

“We believe the current username/password system is outdated and obsolete.” Steve Kirsch, One ID founder and serial entrepreneur, said in a press release. “We continue to experience phishing, malware and key logging attacks, as well as massive centralized data breaches exposing users' passwords and credit card information. Until we eliminate the use of shared secrets for authentication, there will never be a satisfactory answer to the question, 'How do I know I am really safe when I sign on to a Web site?'"

OneID uses public key cryptography to let users maintain one secure identity across multiple computers and mobile devices. The idea is similar to the way many sites use Facebook (News - Alert) and Twitter logins to authenticate with their services. Kirsch said that over 1,000 sites had already added support for OneId, which launched its public beta last month.

The advantage to users is that they only have one login to manage, instead of the various usernames and passwords spread across many accounts.

“As with single sign-on plays,” said Rip Emerson (News - Alert), writing for TechCrunch, “the goal is to reduce friction and fraud, inherent to authentication (and security) that is part of every digital financial transaction. That, and on the consumer side, comes with it the benefit of speeding up the sign in and checkout process by way of single-click purchases – like Amazon one-click without the login.”

OneID has already attracted some impressive funding. Both Khosla Ventures and North Bridge Venture Partners have raised a total of $7 Million in series A financing. The company has also added Shrish Sathaye from Khosla and Jonathen Heiliger from North Bridge as board members.

Despite this auspicious beginning, the company still needs to expand its clientele; not just add another identity to worry about.

“There are already a number of services attempting to handle the single sign-on problem, and while OneID wants to eliminate passwords from memory, oftentimes these identity plays just end up in offering one more competing standard, rather than achieving the opposite,” Emerson wrote in his article.