Designing a Secure REST (Web) API without OAuth

Situation You want to develop a RESTful web API for developers that is secure to use, but doesn’t require the complexity of OAuth and takes a simple “pass the credentials in the query” approach… or something equally-as-easy for people to use, but it needs to be secure. You are a smart guy, so you start to think… Problem You realize that literally passing the credentials over HTTP leaves that data open to being sniffed in plain-text; After the Gawker incident, you realize that plain-text or weakly-hashed anything is usually a bad idea. You realize that hashing the password and sending the hash over the wire in lieu of the plain-text password still gives people sniffing at least the username for the account and a hash of the password that could (in a disturbing number of cases) be looked up in a Rainbow Table. That’s not good, so you scratch your head some more… “Still not quite right!” Solution So you keep searching for articles on “secure API design“… That seems pretty straight forward.
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