The client supplies the decryption key and the data is decrypted on the server and then sent to the client. This is useful if only some of the data is sensitive. The pgcrypto module allows certain fields to be stored encrypted. If MD5 encryption is used for client authentication, the unencrypted password is never even temporarily present on the server because the client MD5-encrypts it before being sent across the network. By default, database user passwords are stored as MD5 hashes, so the administrator cannot determine the actual password assigned to the user.
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