RSA recently announced their Distributed Credential Protection (DCP) technology which should help address the impact of passwords leakage/theft when the system where they are stored gets compromised. They accomplish that by splitting up stored credentialsacrossdifferent systems.
In its current implementation it uses 2 servers. 1 server (BLUE) stores the password XOR to a random number and another server (RED) stores that random number.
When a user wants to authenticate it uses his password to XOR it with his own Random number. It then sends the transformed password to the BLUE server and the new random number to the RED server.
The BLUE and RED servers then compare the stored password with the one the user just provided. At this stage, I guess it must communicate to the RED server to get the corresponding random numbers.
This process is given an overview ...
>>[READ MORE]

Distributed Credential Protection
Wipe out/Factory Reset some Android’s phones