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Perusing the list of presenters and sponsors of the Social Networking and Dating conference in Miami. I came across Vidoop, which is building out a single signon solution based on Open ID. Vidoop provides corporate-grade security to websites, but with an interesting twist.

Vidoop Secure is a software-only, multi-factor user login technology based on categorized images. When a user enrolls, he chooses image categories from a bank of possible image content (such as airplanes, cars, or keys). This constitutes the shared secret. Then, upon proof of receipt of an access code transmitted out-of-band by e-mail or phone, the user’s computer is activated with a software token.

When choosing a username for a site, user chooses several images from a set of predefined categories arranged in a grid. Each individual user is presented with a different array of images during each login attempt. The images associated with the categories change for each login attempt while the categories stay the same, changing only their location on the grid. Users logging in on a new machine are able to retrieve their access code via pre-verified mobile phones.

At first I thought it was similar to the Yahoo! login feature where you are greeted with an image of your choosing during the login process, which supposedly is useful in fighting phishing. This is not the case. Vidoop is one of those things that you have to try to fully understand how simple and smart authentication can be when it’s done right. Watch a video that explains Vidoop or try it yourself at Myvidoop.com.

What this amounts to is a hack-proof login solution that can’t be broken with keystroke loggers, brute force attacks, phishing and automated man in the middle attacks.

As an OpenID provider, Vidoop is the first company that makes offering OpenID financially self-sustaining and profitable. With hundreds of millions of people potentially using OpenID credentials, vidoop could be a driver for adoption rates, especially when sites realize they can make money with Vidoop.

Sites get secure login capabilities and get paid to use it. This is a win for all parties involved. Images can be actual advertising. Think about zip-code targeted ads in images. vidoop manages ads for customer.

Vidoop offers sites three ways to make money.

1) Install login on your site. Vidoop shares ad revenue.
2) Open ID enable your site. Put button next to login saying “”get your OpenID”. For each authentication, vidoop will pay the site.
3) Take entire MyVidoop for domains, password manager, self-brand, for free. Business model is to see more users seeing image grid.

Vidoop can be used on small or large sites. Vidoop will let larger sites use own ad partner, or combination of both ad providers.

Based on Tulsa, OK, Vidoop is two years old, has several partner and a large number of patents. They also provide users with password manager.

Vidoop has an SDK, and runs as web service, exposing their API. Enterprise solution is shipping based on Outlook Web Access.

Vidoop will be making a major announcement at the conference next week.

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