During a conference held at CeBIT, Microsoft announced its intention to stop using the password system we're used to, along with the Longhorn operating system release. The new identification and authorizing method will be based on the two-factor authentication.

Detlef Eckert, the manager for Microsoft's Trustworthy Computing project didn't provide details on the authentication method the future operating system will include, but declared that the security level offered by it will be far superior to that of the password-protecting approach and will provide a secure medium for the use of smartcards and tokens (authentication devices for applications that require an increased security level).

Security experts agree that the password authentication times are over or very close to being over, and adopting the two-factor authentication method is a necessary and logic step for an operating system based on strict security criteria, and with the e-commerce trend constantly ascending.

The new method increases the protection level for online transactions and operations. The authentication device is dependant on two factors, the user having to provide two authentication elements: the token and the PIN.

Several participants to Microsoft's conference highlighted the importance of these measures, especially since lately several Australian banks withdrew from online banking activities due to low security levels.

However, not everybody thinks the situation is so severe. Several experts reminded the audience that samples of well protected digital identity are very common, the most obvious examples being mobile phones and personal information enclosed within SIM cards.