SQRL (short for "Secure Quick Reliable Login," pronounced "squirrel") is an open standard for user authentication online. This system uses asymmetric cryptography to authenticate users, thus eliminating the need for usernames and passwords. This system was designed by security researcher Steve Gibson, and has been released into the public domain.[1]
When SQRL is configured and in use by a client and server, the process goes as follows.
Since the client should be the only one with the private key, and only the private key can encrypt text so that the client's public key can decrypt it, this process proves that the client's private key was used. However, it is never disclosed to the server. Nonetheless, the server can be reasonably assured who a client is. Further, the server never needs to collect private information. There is no need to secure a username and password, since there is none needed.[1]
This entire process relies solely on the private key, meaning that it is very important for this to be secure. SQRL uses "25519" elliptic curve cryptography to provide the user with what is believed to be at least the equivalent of a 2140 key strength[2][3]