Wikipedia
In computing, the Challenge-Handshake Authentication Protocol (CHAP) authenticates a user or network host to an authenticating entity. That entity may be, for example, an Internet service provider. CHAP is specified in RFC 1994.
CHAP provides protection against replay attacks by the peer through the use of an incrementally changing identifier and of a variable challenge-value. CHAP requires that both the client and server know the plaintext of the secret, although it is never sent over the network. …
Challenge-Handshake Authentication Protocol - Wikipedia, the free encyclopedia