Identity concepts and encryption basics

SC-900 · Security, compliance and identity concepts · Updated

Almost every attack on a cloud service starts or ends with an identity. SC-900 expects you to know the vocabulary before it asks about Microsoft Entra.

Identity basics

An identity can be a user, a device, a service or an application. Identities are stored in a directory and checked by an identity provider (IdP), which issues proof of sign-in to apps.

Two ideas are always separated:

TermQuestion it answersExample
AuthenticationWho are you?Password plus an authenticator prompt
AuthorizationWhat may you do?Reader role on a storage account

Authentication always comes first. A modern identity system also supports single sign-on (one sign-in for many apps) and role-based access control to grant permissions.

Identity providers and federation

A modern identity solution centralizes users in one provider so that apps do not keep their own passwords. Federation extends this: two organizations trust each other’s IdP, so a user from one can access resources of the other without a second account. Common protocols include SAML, OpenID Connect and OAuth 2.0. Active Directory Domain Services is the on-premises directory; Active Directory Federation Services (AD FS) provides federation from it. Microsoft Entra ID is the cloud equivalent.

Encryption and hashing

ConceptKey points
Symmetric encryptionOne shared key encrypts and decrypts. Fast, used for bulk data.
Asymmetric encryptionA public key encrypts, a private key decrypts. Also used for digital signatures.
HashingOne-way. Same input gives the same fixed-length output. Used for passwords and integrity checks.

Data has three states. At rest is stored data, protected with disk or database encryption. In transit moves over a network, protected with TLS. In use is being processed in memory.

Common threats

Know the labels: phishing tricks users into giving credentials, password spray tries a few common passwords across many accounts, ransomware encrypts data for payment, and DDoS floods a service so it becomes unavailable.

Exam traps

  • Authentication is not authorization. Signing in successfully does not mean access is allowed.
  • Hashing is not encryption. You cannot decrypt a hash.
  • Federation is a trust between providers. It is not the same as syncing passwords.
  • Asymmetric encryption uses two different keys, not one shared key.
  • Encrypting data at rest does not protect it while it travels. Both states need protection.

Practice questions

Choose an answer, then review the explanation to check your understanding.

1. A user proves who they are by entering a password and approving a phone prompt. What is this process called?

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Answer: B.Authentication proves identity. Authorization decides what the proven identity may do.

2. Employees sign in to a partner's app with their own company credentials, and the partner trusts the company's identity provider. What is this called?

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Answer: B.Federation is a trust relationship between identity providers, so one organization accepts the other's authentication.

3. Which statement about hashing is true?

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Answer: B.A hash is one-way. It is used to store passwords and to check integrity, not to recover the original data.

4. Data stored on a disk is protected so that stolen drives are unreadable. Which state of data does this protect?

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Answer: B.Encryption at rest protects stored data, such as disks or databases. TLS protects data in transit.

SC-900 course outline

All 8 lessons · Course overview
  1. Shared responsibility and Zero TrustSecurity, compliance and identity concepts Free
  2. Identity concepts and encryption basicsSecurity, compliance and identity concepts Free
  3. Entra ID authentication, MFA and passwordlessMicrosoft Entra Full access
  4. Conditional Access, PIM and Identity ProtectionMicrosoft Entra Full access
  5. Defender XDR, Defender for Cloud and SentinelMicrosoft security solutions Full access
  6. Azure network security servicesMicrosoft security solutions Full access
  7. Purview sensitivity labels, DLP and data governanceMicrosoft compliance solutions Full access
  8. Insider risk, eDiscovery, Audit and Compliance ManagerMicrosoft compliance solutions Full access