Every day we use dozens if not hundreds of applications connecting to some kind of data repository. This simple step is normally executed over the network and, given so, it is subject to possible sniffing with all the possible related consequences.
Given that, it is normally better to protect your connection using data encryption like SSL, or at the minimum, make the information you pass to connect less easy to be intercepted.
At the same time, it is a best practice to not store connection credentials in clear text, not even inside a table in your database. Doing that is the equivalent of writing your password on a sticky note on your desk. Not a good idea.
Instead, the main options are either transforming the passwords to be less identifiable via hashing or storing the information in an external centralized vault.
In MySQL, the passwords are transformed to not be clear text, and several different plugins …
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