Kim Cameron writes about fixing OpenID’s phishing problems by using Cardspace. Certainly I agree that using strong authentication to the OpenID provider fixes the phishing problem – but if you have strong authentication, why bother to use OpenID at all? Why not strongly authenticate to the site you are really trying to log into, instead?
Of course, Cardspace is a pretty heavyweight solution for this, so perhaps that’s what Kim’s getting at? It also doesn’t work well if you have more than one machine – moving your credentials around is not something Cardspace does well.
In my view, there’s a sweeter spot for solving this problem than Cardspace (or OpenID, obviously) – and that is to do strong authentication based purely on a password. That way, you can use the same password everywhere, so no problem with moving between machines, but can still resist phishing attacks and don’t have to make yourself linkable across all sites. Obviously supporting this would be way easier than taking the whole of Cardspace on board, but would have all of the immediate advantages. Clearly it would get you nowhere with advanced identity management, but its not like we don’t already have protocols for that and nor does there seem to be much demand for it yet.