Understanding OAuth2, SSO, and JWT for Product Authentication Features

Blog Author
Siddharth
Published
29 May, 2025
Product Authentication Features

As businesses shift towards more digital and interconnected environments, the need for secure and streamlined authentication processes becomes more crucial. User authentication is a core aspect of building secure applications, particularly when handling sensitive data or services. OAuth2, Single Sign-On (SSO), and JSON Web Tokens (JWT) are three essential components that significantly improve how users authenticate with systems, ensuring secure access and a seamless user experience. In this blog post, we’ll break down these concepts, their roles, and how they integrate into modern product authentication features.

What is OAuth2?

OAuth2 (Open Authorization 2.0) is a protocol used for authorization, allowing third-party services to access a user's resources without exposing their credentials. It's an industry standard that enables secure, token-based authentication. OAuth2 was designed to enable services like social media logins (e.g., "Login with Google" or "Login with Facebook"), where a user grants permission to a third-party application to access certain data.

How OAuth2 Works:

OAuth2 uses an authorization server that provides access tokens for clients (the requesting applications) to interact with resources (user data). There are four main roles in OAuth2:

  1. Resource Owner: The user who owns the resources (data) being accessed.

  2. Client: The application requesting access to the resource (e.g., a mobile app).

  3. Authorization Server: The server that validates the user's credentials and issues access tokens.

  4. Resource Server: The server that hosts the protected resources (e.g., user data), which can be accessed using OAuth2 access tokens.

The process typically follows these steps:

  1. The client requests access to the resource server on behalf of the resource owner.

  2. The authorization server prompts the user to approve or deny the access request.

  3. If the user grants permission, the authorization server issues an access token.

  4. The client uses this token to access the resource server on behalf of the user.

OAuth2 does not handle user authentication directly; it handles authorization. This is where it differs from traditional authentication systems.

For more in-depth knowledge on how OAuth2 integrates with product development, you can explore Project Management Professional certification to understand the management aspects of OAuth2 integration in enterprise projects.

What is Single Sign-On (SSO)?

Single Sign-On (SSO) is an authentication process that allows a user to log in once and gain access to multiple systems or applications without needing to re-enter credentials each time. It simplifies the user experience while ensuring that security is centralized and managed effectively. SSO relies on a central authentication server that communicates with various connected applications.

How SSO Works:

In an SSO system, a user logs in through an identity provider (IDP), which authenticates the user. Once authenticated, the user can access various applications without re-authenticating. The IDP will pass tokens (like SAML or OAuth tokens) to the applications they need to access. Here’s a simplified workflow:

  1. The user accesses an application.

  2. The application checks if the user is already authenticated with the identity provider.

  3. If the user is not authenticated, they are redirected to the IDP for login.

  4. Upon successful authentication, the IDP returns an authentication token to the application.

  5. The user can now access other connected applications without further login prompts.

SSO reduces the number of passwords a user needs to remember and limits the risk of password fatigue or weak password usage. It's widely used in enterprise environments where users need to access a variety of services like email, intranet, and third-party applications.

For those interested in understanding how product ownership and management tie into implementing SSO, learning about SAFe POPM certification can provide valuable insights into aligning business goals and security requirements.

What is JSON Web Token (JWT)?

JSON Web Token (JWT) is a compact, URL-safe token format used for securely transmitting information between parties. It's often used in OAuth2 systems to carry the access token, but it’s also employed in other authentication processes, such as API authentication. A JWT consists of three parts: a header, a payload, and a signature.

  1. Header: Typically indicates the type of token (JWT) and the signing algorithm (e.g., HMAC SHA256 or RSA).

  2. Payload: Contains the claims, which are statements about an entity (typically the user) and additional data.

  3. Signature: Ensures that the token was not tampered with. It is created by signing the header and payload using a secret key or a public/private key pair.

How JWT Works:

JWT is commonly used in authentication scenarios where the server issues a JWT to a client after login. The client can then send the JWT in the authorization header of HTTP requests to prove they are authenticated. The server will validate the JWT and, if it’s valid, grant access to protected resources.

Here’s the typical flow:

  1. The user logs in by providing credentials to the authentication server.

  2. The server validates the credentials and issues a JWT token.

  3. The client stores the token (usually in local storage or cookies) and sends it with each subsequent request in the HTTP Authorization header.

  4. The server validates the JWT, and if valid, processes the request.

JWT tokens are stateless, meaning that the server does not need to store session data. Instead, the client holds all the information it needs to authenticate.

JWT is widely used for API security, especially when you need scalable, stateless authentication, such as in microservices or single-page applications (SPAs).

Integrating OAuth2, SSO, and JWT into Product Authentication Features

When building authentication systems for modern products, you can combine OAuth2, SSO, and JWT to create a seamless and secure user experience.

  • OAuth2 + JWT: When implementing OAuth2, JWT is a popular format for the access token. JWT provides a compact, self-contained token that can carry the information needed for authorization, such as the user’s identity and the permissions granted.

  • OAuth2 + SSO: You can integrate OAuth2 with SSO by having an identity provider (IDP) authenticate users and issue OAuth2 tokens. SSO reduces the need for users to authenticate repeatedly while OAuth2 controls the permissions granted to different services.

  • JWT + SSO: Using JWT with SSO allows the IDP to issue a token that can be passed across multiple applications, enabling seamless access without requiring re-authentication. The applications simply need to validate the JWT to ensure the user is authenticated.

For example, imagine a user logs into a single platform using SSO. This login generates a JWT, which the user can use to access various applications in the system. With OAuth2, these apps can ask for permission to access user data without requiring the user’s password, and JWT will be the format for secure data transmission between the apps and servers.

Conclusion

Incorporating OAuth2, SSO, and JWT into your product’s authentication features is a powerful way to streamline security and improve the user experience. OAuth2 offers robust authorization capabilities, SSO reduces password fatigue by enabling centralized authentication, and JWT ensures secure, scalable transmission of authentication data. By understanding how these technologies work together, product developers can build secure and efficient systems that protect sensitive data and provide a seamless user experience.

If you're looking to gain deeper insights into managing large-scale projects that involve these authentication technologies, consider looking into PMP certification training, which can help you master the project management aspects of implementing security protocols. Similarly, understanding the role of product owners in aligning such systems with business needs can be better grasped through SAFe POPM certification.

 

By effectively managing these tools and concepts, you can ensure that your product authentication features meet modern security standards while maintaining a smooth and user-friendly experience.

 

Also read - Managing Consent and Privacy Controls in Product Design

Also see - Writing User Stories for Asynchronous Event-Driven Systems

Share This Article

Share on FacebookShare on TwitterShare on LinkedInShare on WhatsApp

Have any Queries? Get in Touch