Authentication process
NTLM uses a
challenge-response protocol:
- The client sends the username to the server
- The server sends back a random number (i. e. the challenge)
- The client encrypts this number with the hash value of his password and sends this value back to the server
- The server (which has the user's password stored in a database) also encrypts the challenge with the user's password's hash value and compares the response sent back by the client
Thus, the password is not transmitted over the network.