OAuth is an open protocol to allow secure API authentication in a simple and standard method from desktop and web applications.
You can find more information at http://oauth.net, OAuth allows you the User to grant access to your private resources on one site (which is called the Service Provider), to another site (called Consumer, not to be confused with you, the User). OAuth is about giving access to your stuff without sharing your identity at all (or its secret parts).
OAuth talks about getting users to grant access while OpenID talks about making sure the users are really who they say they are. Both technologies should work great together.
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