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API Authentication Methods Comparison: API Keys vs OAuth vs JWT vs mTLS

Compare API authentication methods including API keys, OAuth 2.0, JWT bearer tokens, Basic Auth, and mTLS. Learn when to use each method based on security requirements, use cases, and implementation complexity.

API Authentication Methods Comparison: API Keys vs OAuth vs JWT vs mTLS

Choosing the right API authentication method is critical for security, usability, and scalability. This guide compares major authentication approaches—API keys, OAuth 2.0, JWT bearer tokens, Basic Auth, and mTLS—with clear recommendations for when to use each.

Authentication Methods Overview

┌─────────────────────────────────────────────────────────────────┐
│               API AUTHENTICATION SPECTRUM                       │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  Simple ◄─────────────────────────────────────────────► Complex │
│  Low Security                                     High Security │
│                                                                 │
│  ┌───────┐  ┌───────┐  ┌───────┐  ┌───────┐  ┌───────┐         │
│  │ Basic │  │  API  │  │  JWT  │  │ OAuth │  │ mTLS  │         │
│  │ Auth  │  │ Keys  │  │Bearer │  │ 2.0   │  │       │         │
│  └───────┘  └───────┘  └───────┘  └───────┘  └───────┘         │
│                                                                 │
│  Features added as complexity increases:                        │
│  • Expiration ─────────────────────────────────────►           │
│  • Scopes/Permissions ─────────────────────────────►           │
│  • User Delegation ────────────────────────────────►           │
│  • Revocation ─────────────────────────────────────►           │
│  • Cryptographic Identity ─────────────────────────►           │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Quick Comparison Table

MethodComplexitySecurityUser ContextExpirationBest For
Basic AuthLowLowOptionalNoDev/testing, simple internal APIs
API KeysLowMediumNoOptionalServer-to-server, public APIs
JWT BearerMediumMedium-HighYesYesStateless APIs, microservices
OAuth 2.0HighHighYesYesUser-authorized access, 3rd-party apps
mTLSHighVery HighServiceCert-basedZero-trust, service mesh

Decision Tree

What are you building?
│
├─► Internal tool / Development only
│   └─► Basic Auth or API Keys (keep it simple)
│
├─► Public API for developers
│   │
│   ├─► Developers access their own data
│   │   └─► API Keys (simple, familiar)
│   │
│   └─► Developers access user data
│       └─► OAuth 2.0 (user authorization required)
│
├─► Mobile or Single-Page App
│   │
│   └─► Users log in to access their data
│       └─► OAuth 2.0 + PKCE → JWT Bearer
│
├─► Microservices / Service-to-Service
│   │
│   ├─► Internal, trusted network
│   │   └─► JWT Bearer or API Keys
│   │
│   └─► Zero-trust / High security
│       └─► mTLS + Optional JWT for user context
│
└─► Partner Integration
    │
    ├─► Fixed, known partners
    │   └─► API Keys (with IP allowlisting)
    │
    └─► Partners accessing user data
        └─► OAuth 2.0

Method 1: Basic Authentication

How It Works

┌──────────────────────────────────────────────────────────────┐
│                    BASIC AUTHENTICATION                      │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  Credentials: username:password                              │
│  Encoding: Base64 (NOT encryption!)                          │
│                                                              │
│  Request:                                                    │
│  GET /api/resource HTTP/1.1                                  │
│  Authorization: Basic dXNlcm5hbWU6cGFzc3dvcmQ=               │
│                       ▲                                      │
│                       │                                      │
│                 base64("username:password")                  │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Implementation

// Client: Making authenticated request
const credentials = btoa(`${username}:${password}`);
fetch('/api/data', {
  headers: {
    'Authorization': `Basic ${credentials}`
  }
});

// Server: Validating Basic Auth
function basicAuthMiddleware(req, res, next) {
  const auth = req.headers.authorization;
  if (!auth?.startsWith('Basic ')) {
    return res.status(401).set('WWW-Authenticate', 'Basic').send();
  }

  const credentials = Buffer.from(auth.slice(6), 'base64').toString();
  const [username, password] = credentials.split(':');

  if (validateCredentials(username, password)) {
    req.user = { username };
    next();
  } else {
    res.status(401).send('Invalid credentials');
  }
}

When to Use

Good for:

  • Development and testing environments
  • Simple internal tools
  • CLI applications with user prompts
  • When simplicity outweighs security needs

Avoid for:

  • Production public APIs
  • Browser-based applications (credentials exposed)
  • Anywhere without HTTPS
  • When you need token expiration or scopes

Method 2: API Keys

How It Works

┌──────────────────────────────────────────────────────────────┐
│                      API KEY AUTH                            │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  Key Format: Random string (32-64 characters)                │
│  Example: sk_live_abc123xyz789...                            │
│                                                              │
│  Common Placements:                                          │
│  ┌────────────────────────────────────────────────────────┐  │
│  │ Header:    X-API-Key: sk_live_abc123xyz789...         │  │
│  │ Header:    Authorization: ApiKey sk_live_abc123...    │  │
│  │ Query:     ?api_key=sk_live_abc123...  (avoid!)       │  │
│  └────────────────────────────────────────────────────────┘  │
│                                                              │
│  Identifies: Application (not user)                          │
│  Contains: No embedded data (opaque token)                   │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Implementation

// Server: Generate API key
const crypto = require('crypto');

function generateApiKey(prefix = 'sk_live') {
  const randomPart = crypto.randomBytes(32).toString('hex');
  return `${prefix}_${randomPart}`;
}

// Server: Store hashed key (never store plaintext!)
async function createApiKey(clientId) {
  const key = generateApiKey();
  const hashedKey = crypto.createHash('sha256').update(key).digest('hex');

  await db.query(
    'INSERT INTO api_keys (client_id, key_hash, created_at) VALUES ($1, $2, NOW())',
    [clientId, hashedKey]
  );

  return key;  // Return to client ONCE, never stored in plaintext
}

// Server: Validate API key
async function validateApiKey(req, res, next) {
  const key = req.headers['x-api-key'];
  if (!key) {
    return res.status(401).json({ error: 'API key required' });
  }

  const hashedKey = crypto.createHash('sha256').update(key).digest('hex');
  const result = await db.query(
    'SELECT client_id, scopes FROM api_keys WHERE key_hash = $1 AND status = $2',
    [hashedKey, 'active']
  );

  if (result.rows.length === 0) {
    return res.status(401).json({ error: 'Invalid API key' });
  }

  req.client = result.rows[0];
  next();
}

Best Practices

PracticeImplementation
Use prefixessk_live_, sk_test_, pk_ for public keys
Hash in databaseSHA-256 hash, never store plaintext
Environment separationDifferent keys for dev/staging/prod
Scoped permissionsread:users, write:orders per key
Rotation supportMultiple active keys during transition
LoggingTrack usage, detect anomalies

When to Use

Good for:

  • Server-to-server API calls
  • Third-party developer integrations
  • Simple rate limiting and tracking
  • When user context isn't needed

Avoid for:

  • Browser/mobile apps (can't keep secret)
  • User-specific data access
  • When you need fine-grained permissions per user

Method 3: JWT Bearer Tokens

How It Works

┌──────────────────────────────────────────────────────────────┐
│                    JWT BEARER AUTH                           │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  Token Format: header.payload.signature                      │
│  Contains: Embedded claims (user, expiry, scopes)            │
│                                                              │
│  Request:                                                    │
│  GET /api/resource HTTP/1.1                                  │
│  Authorization: Bearer eyJhbGciOiJSUzI1NiIs...               │
│                                                              │
│  Validation: Verify signature + check claims                 │
│  Stateless: No server-side session lookup needed             │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Implementation

const jwt = require('jsonwebtoken');

// Issue JWT
function issueToken(user) {
  return jwt.sign(
    {
      sub: user.id,
      email: user.email,
      roles: user.roles,
      scopes: ['read:profile', 'write:profile']
    },
    privateKey,
    {
      algorithm: 'RS256',
      expiresIn: '15m',
      issuer: 'https://auth.example.com',
      audience: 'https://api.example.com'
    }
  );
}

// Validate JWT middleware
function jwtMiddleware(req, res, next) {
  const auth = req.headers.authorization;
  if (!auth?.startsWith('Bearer ')) {
    return res.status(401).json({ error: 'Bearer token required' });
  }

  const token = auth.slice(7);

  try {
    const decoded = jwt.verify(token, publicKey, {
      algorithms: ['RS256'],
      issuer: 'https://auth.example.com',
      audience: 'https://api.example.com'
    });

    req.user = decoded;
    next();
  } catch (err) {
    if (err.name === 'TokenExpiredError') {
      return res.status(401).json({ error: 'Token expired' });
    }
    return res.status(401).json({ error: 'Invalid token' });
  }
}

When to Use

Good for:

  • Stateless REST APIs
  • Microservices (each can validate independently)
  • Mobile applications
  • Cross-domain authentication

Avoid for:

  • When you need instant revocation (JWTs are valid until expiry)
  • Long-lived sessions without refresh tokens
  • When token size is a concern (JWTs are larger than session IDs)

See JWT Security Best Practices for detailed guidance.

Method 4: OAuth 2.0

How It Works

┌──────────────────────────────────────────────────────────────┐
│                     OAUTH 2.0 FLOW                           │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  ┌──────┐   1. Auth Request    ┌──────────────┐              │
│  │ User │ ───────────────────► │    Auth      │              │
│  └──────┘                      │   Server     │              │
│      ▲                         └──────────────┘              │
│      │                                │                      │
│      │ 2. User consents               │                      │
│      │    to scopes                   │                      │
│      │                                ▼                      │
│  ┌──────┐   3. Auth Code       ┌──────────────┐              │
│  │ App  │ ◄─────────────────── │   Callback   │              │
│  └──────┘                      └──────────────┘              │
│      │                                                       │
│      │ 4. Exchange code                                      │
│      │    for tokens                                         │
│      ▼                                                       │
│  ┌──────────────┐              ┌──────────────┐              │
│  │ Access Token │ ───────────► │   Resource   │              │
│  │ + Refresh    │   5. API     │   Server     │              │
│  └──────────────┘   Request    └──────────────┘              │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Key Concepts

ConceptDescription
ScopesPermissions granted (read:email, write:repos)
Access TokenShort-lived credential for API calls
Refresh TokenLong-lived credential to get new access tokens
Authorization CodeOne-time code exchanged for tokens
PKCEProof Key for Code Exchange (prevents interception)

When to Use

Good for:

  • Third-party apps accessing user data
  • "Login with Google/GitHub/Facebook"
  • APIs where users control data sharing
  • Mobile and single-page applications

Avoid for:

  • Simple server-to-server calls (use Client Credentials or API keys)
  • Internal microservices (adds unnecessary complexity)

See OAuth 2.0 & OIDC Implementation Guide for detailed implementation.

Method 5: mTLS (Mutual TLS)

How It Works

┌──────────────────────────────────────────────────────────────┐
│                    MUTUAL TLS (mTLS)                         │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  Standard TLS: Server proves identity to client              │
│  mTLS: BOTH client and server prove identity                 │
│                                                              │
│  ┌──────────┐                           ┌──────────┐         │
│  │  Client  │                           │  Server  │         │
│  │          │ ─── 1. ClientHello ────►  │          │         │
│  │          │ ◄── 2. ServerHello ─────  │          │         │
│  │          │ ◄── 3. Server Cert ─────  │          │         │
│  │          │ ◄── 4. CertRequest ─────  │  (new)   │         │
│  │          │ ─── 5. Client Cert ────►  │          │         │
│  │          │ ─── 6. Verify ─────────►  │          │         │
│  │          │ ◄── 7. Verify ──────────  │          │         │
│  │          │ ◄──► 8. Encrypted ◄────►  │          │         │
│  └──────────┘                           └──────────┘         │
│                                                              │
│  Client Certificate identifies the calling service           │
│  No shared secrets needed - cryptographic proof              │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Implementation (Node.js)

const https = require('https');
const fs = require('fs');

// Server: Require client certificates
const server = https.createServer({
  key: fs.readFileSync('server-key.pem'),
  cert: fs.readFileSync('server-cert.pem'),
  ca: fs.readFileSync('client-ca.pem'),  // CA that signed client certs
  requestCert: true,
  rejectUnauthorized: true
}, (req, res) => {
  // Client certificate info available
  const clientCert = req.socket.getPeerCertificate();
  console.log('Client:', clientCert.subject.CN);

  res.end('Authenticated!');
});

// Client: Present certificate
const options = {
  hostname: 'api.example.com',
  port: 443,
  path: '/data',
  method: 'GET',
  key: fs.readFileSync('client-key.pem'),
  cert: fs.readFileSync('client-cert.pem'),
  ca: fs.readFileSync('server-ca.pem')
};

https.request(options, (res) => {
  // Handle response
});

When to Use

Good for:

  • Zero-trust architectures
  • Service mesh (Istio, Linkerd)
  • High-security financial/healthcare APIs
  • Compliance requirements (PCI-DSS, HIPAA)

Avoid for:

  • Public APIs (certificate distribution is complex)
  • Browser clients (certificate management UX is poor)
  • When simpler methods suffice

Combining Authentication Methods

Many production systems layer multiple methods:

┌─────────────────────────────────────────────────────────────────┐
│                    LAYERED AUTHENTICATION                       │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  Layer 1: Transport Security                                    │
│  └─► mTLS (service identity) or TLS (encryption)               │
│                                                                 │
│  Layer 2: Application Identity                                  │
│  └─► API Key (which app is calling?)                           │
│                                                                 │
│  Layer 3: User Identity                                         │
│  └─► JWT/OAuth token (which user, what permissions?)           │
│                                                                 │
│  Example Request:                                               │
│  ┌──────────────────────────────────────────────────────────┐   │
│  │ TLS: Client cert = service-a                            │   │
│  │ Header: X-API-Key: sk_live_abc123...                    │   │
│  │ Header: Authorization: Bearer eyJhbGc...                │   │
│  └──────────────────────────────────────────────────────────┘   │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Security Comparison Summary

AspectBasicAPI KeyJWTOAuthmTLS
Credentials in requestEvery requestEvery requestEvery requestEvery requestTLS handshake
Secret storage clientRequiredRequiredToken onlyToken onlyCert file
Replay protectionNoneNoneexp claimexp claimTLS
RevocationImmediateImmediateExpiry-basedImmediateCRL/OCSP
User contextOptionalNoYesYesService only
DelegationNoNoNoYesNo

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