I replaces passwords with a cryptographic key. When you register at a website, you do not put in a password, instead it generates a key-pair, kinda like you would have with ssh auth. Usually to login you use biometrics, which will unlock the keys on your device. Advantage is that they are phishing resistant (the keys are bound to a specific domain), convenient and if the database of the website is leaked, it doesnt matter since they can only store your public key, which is worthless for authentication.
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