my way is to use Database.
I use encryption to store Passwords in db.
Read login name and get the encrypted password from DB, then decrypt the password and compare the entered password.
works well for applications which are client based as well as web based.
If you think you CAN, you can, If you think you CAN'T, you are probably right.
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I use the same way like Andy Tacker. But one difference I have. I also store my passwords encrypted in database and after reading the entered password I crypt that and compare it with the password from DB. In my opinion this is very important, because if you decrypt the password from DB for comparing, an attacker can enter a fake password and make a memorydump and will get the correct password. So if you compare encrypted passwords he won't get an important information.
Generaly: never store password itself, neither clear nor encrypted. Store only its hash value computed by a strong alghoritm. In login process, just compare hash of typed in password with stored hash.
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