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What is NTLM primarily known for in terms of its authentication strategy?

  1. Single Sign-On

  2. Challenge/Response

  3. Ticket-based

  4. Token-based

The correct answer is: Challenge/Response

NTLM, or NT LAN Manager, is primarily recognized for its challenge/response authentication strategy. In this method, when a client wants to authenticate to a server, the server generates a random value, known as a challenge, and sends it to the client. The client then uses this challenge, along with its password (or a hash of the password), to produce a response that is sent back to the server. The server can verify this response based on its own knowledge of the client's password, thus establishing the client's identity without transmitting the actual password itself over the network. This mechanism enhances security because even if an attacker intercepts the challenge and response, they cannot easily derive the user’s password from it, making it less susceptible to certain types of password attacks. This challenge/response approach differentiates NTLM from other authentication strategies like ticket-based methods, which rely on issuing tickets for sessions, or token-based strategies, that utilize tokens for access control. Additionally, single sign-on environments typically involve central authentication services which are not the primary function of NTLM.