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# Authenticating with an NKey
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The 2.0 version of NATS server introduces a new challenge response authentication option. This challenge response is based on a wrapper we call NKeys which uses ED25519 signing. The server can use these keys in several ways for authentication. The simplest is for the server to be configured with a list of known public keys and for the clients to respond to the challenge by signing it with its private key. This challenge-response insures security by insuring that the client has the private key, but also protects the private key from the server which never has to actually see it.
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The 2.0 version of NATS server introduces a new challenge response authentication option. This challenge response is based on a wrapper we call NKeys which uses [Ed25519](https://ed25519.cr.yp.to/) signing. The server can use these keys in several ways for authentication. The simplest is for the server to be configured with a list of known public keys and for the clients to respond to the challenge by signing it with its private key. This challenge-response insures security by insuring that the client has the private key, but also protects the private key from the server which never has to actually see it.
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Handling challenge response may require more than just a setting in the connection options, depending on the client library.
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# Encrypting Connections with TLS
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While authentication limits which clients can connect, TLS can be used to check the server’s identity and the client’s identity and will encrypt the traffic between the two. The most secure version of TLS with NATS is to use verified client certificates. In this mode, the client can check that it trusts the certificate sent by `nats-server` but the server will also check that it trusts the certificate sent by the client. From an applications perspective connecting to a server that does not verify client certificates may appear identical. Under the covers, disabling TLS verification removes the server side check on the client’s certificate. When started in TLS mode, `nats-server` will require all clients to connect with TLS. Moreover, if configured to connect with TLS, client libraries will fail to connect to a server without TLS.
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While authentication limits which clients can connect, TLS can be used to check the server’s identity and the client’s identity and will encrypt the traffic between the two. The most secure version of TLS with NATS is to use verified client certificates. In this mode, the client can check that it trusts the certificate sent by `nats-server` but the server will also check that it trusts the certificate sent by the client. From an application's perspective connecting to a server that does not verify client certificates may appear identical. Under the covers, disabling TLS verification removes the server side check on the client’s certificate. When started in TLS mode, `nats-server` will require all clients to connect with TLS. Moreover, if configured to connect with TLS, client libraries will fail to connect to a server without TLS.
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The [Java examples repository](https://github.com/nats-io/java-nats-examples/tree/master/src/main/resources) contains certificates for starting the server in TLS mode.
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For this example, start the server using:
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```sh
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> gnatsd --auth mytoken
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> nats-server --auth mytoken
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```
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The code uses localhost:4222 so that you can start the server on your machine to try them out.
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