This article is from the Sniffer FAQ, by Christopher Klaus cklaus@iss.net with numerous contributions by others.
Kerberos is another package that encrypts account information going over the
network. Some of its draw backs are that all the account information is held
on one host and if that machine is compromised, the whole network is
vulnerable. It is has been reported a major difficulty to set up. Kerberos
comes with a stream-encrypting rlogind, and stream-encrypting telnetd is
available. This prevents intruders from capturing what you did after you
logged in.
There is a Kerberos FAQ at ftp at rtfm.mit.edu in
/pub/usenet/comp.protocols/kerberos/Kerberos_Users__Frequently_Asked_Questions_1.11
or try: ftp://aeneas.mit.edu/pub/kerberos/doc/KERBEROS.FAQ
 
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