Federated Identity Management using OpenID Connect and OAuth 2.0

federated identity management openid connect oauth 2.0
J
Jordan Blake

Senior Content Strategist

 
August 17, 2025 5 min read

TL;DR

This article covers the fundamentals of federated identity management with a focus on OpenID Connect and OAuth 2.0. You'll get a breakdown of authentication vs authorization, how these protocols work—including common flows and potential vulnerabilities, and implementation guidance. Also, differences between OAuth 2.0, OpenID Connect, and SAML will be explored.

Understanding Federated Identity Management

Okay, let's dive into federated identity management. Ever wonder how you can use one login across, like, a bunch of different websites? That's kinda the gist of it.

Federated identity management is all about securely connecting user identities across different systems. It's basically like this: instead of creating separate accounts for every single website or app, you use one identity provider to manage access. A Dynamic Federated Identity Management Using OpenID Connect

  • Think of it as centralizing authentication and authorization, so users don't need a million different usernames and passwords.
  • It makes the user experience way simpler with single sign-on (sso); log in once, access many services.
  • For example, a healthcare provider can use federated identity to allow doctors to access patient records from different hospitals with one login.

It's easy to mix these up, but they're not the same thing. Authentication is verifying who you are, while authorization is determining what you can access. Common Federated Identity Protocols: OpenID Connect vs OAuth vs SAML 2

  • Authentication confirms a user's identity using factors like passwords, biometrics, or security tokens.
  • Authorization decides what resources a user can access, like admin panels or premium features.
  • Confusing the two can lead to security holes, like giving regular users admin privileges by accident, yikes.

So, now that we've got a handle on the basics, let's move on to understanding the core principles of federated identity management.

OAuth 2.0: Delegating Authorization

OAuth 2.0, huh? It's like the bouncer at the club, deciding who gets in, but for your data. It's all about delegating authorization without handing over your sensitive login details.

  • The core idea is letting one app access your stuff on another, without sharing your password. Think of connecting your google account to a third-party app.
  • OAuth 2.0 defines specific roles. There's the resource owner (you), the client (the app requesting access), the resource server (where your data lives), and the authorization server (which grants access).
  • It uses different "authorization grant types"—code, implicit, password, and client credentials—each for different scenarios. The ibm documentation provides a good overview.

Here's a basic example: imagine you're using an app to print photos from your cloud storage. OAuth 2.0 lets the printing app access your photos without you giving them your cloud storage password.

sequenceDiagram
participant User
participant ClientApp
participant AuthorizationServer
participant ResourceServer

User->>ClientApp: Requests to print photos
ClientApp->>AuthorizationServer: Authorization Request
AuthorizationServer->>User: Authenticates User
User->>AuthorizationServer: Grants access
AuthorizationServer->>ClientApp: Sends Access Token
ClientApp->>ResourceServer: Requests Photos with Token
ResourceServer->>ClientApp: Sends Photos
ClientApp->>User: Prints Photos

OAuth 2.0 is widely used. It's a pretty handy tool for managing permissions but remember, how it's implemented is super important.

Next up, we'll be diving into common oauth 2.0 vulnerabilities.

OpenID Connect: Standardizing Authentication on OAuth 2.0

OpenID Connect, or oidc, kinda sounds like a sequel, right? Well, in a way, it is the next step for OAuth 2.0, especially when it comes to actually figuring out who someone is.

So, OAuth 2.0 is great for authorization, but it doesn't really handle authentication super well. That's where OpenID Connect comes in:

  • oidc is an authentication protocol that's built right on top of OAuth 2.0.
  • It uses something called an id_token, which is basically a digitally signed "I'm me" note. This token is a jwt (json web token)
  • It also standardizes how user profile info is shared, so apps can grab your name, email, etc., securely.

Think of the id_token as, like, a digital passport. It confirms the user's identity to the application. Single sign-on access to SAML 2.0 and OAuth 2.0 applications

  • When you log in with OpenID Connect, the server sends back this token. The app then uses it to verify who you are.
  • The token itself contains claims, like your name, email, and a bunch of other useful stuff.
  • Apps can also verify the jwt signature to make sure the token hasn't been messed with.
sequenceDiagram
participant User
participant ClientApp
participant AuthorizationServer

User->>ClientApp: Requests access
ClientApp->>AuthorizationServer: Authentication Request
AuthorizationServer->>User: Authenticates User
User->>AuthorizationServer: Grants access
AuthorizationServer->>ClientApp: Sends Access Token & ID Token
ClientApp->>ClientApp: Verifies ID Token

oidc builds on OAuth 2.0's foundation, adding a layer of standardization and security specifically for authentication.

Now, let's dive into how this all works in practice, and then we'll get into the security side of things.

OpenID Connect vs. OAuth 2.0 vs. SAML: Choosing the Right Protocol

So, you're trying to figure out which protocol to use? It kinda depends on what you're trying to do, ya know?

  • OAuth 2.0 is mainly for authorization. It lets one app access resources on another service without needing your password. Think connecting a budgeting app to your bank account, it's pretty useful for protecting apis.
  • OpenID Connect (oidc), on the other hand, is all about authentication. It confirms who you are using OAuth 2.0, but also gives a standardized way to share user info. It's great for single sign-on (sso) in consumer apps.
  • SAML is often used in enterprises for sso, especially with older systems. It uses xml to exchange authentication and authorization data. It can be a bit harder to setup, tho.

Choosing the right protocol really depends on your specific needs and existing infrastructure.

Now, let's see how LoginHub can help simplify all this federated identity stuff.

Implementing Federated Identity: Developer Tips

So, you're almost done implementing federated identity? Awesome! Now, let's get into some developer tips to make sure you're doing it right, cause security is kinda important, ya know?

  • always validate redirect uris to prevent account takeovers, its like making sure the delivery guy actually goes to your house and not some random place.
  • use strong cryptography for token signing--think of it as a super secure digital signature.
  • implement robust error handling and logging so you can catch issues early.

ai can really help, too. ai-powered threat detection can spot anomalies, and adaptive authentication adjusts security based on user behavior. Automating vulnerability scans is also a smart move.

Thinking about the future? Keep an eye on decentralized identity and blockchain; it's where things seems to be heading. Also, passwordless authentication methods are getting more popular. And, of course, keep up with evolving standards and protocols.

Time to wrap things up!

J
Jordan Blake

Senior Content Strategist

 

Jordan Blake is a seasoned content strategist with over a decade of experience helping brands craft compelling and optimized digital narratives. Known for translating complex topics into digestible content, Jordan is passionate about SEO-driven storytelling.

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