Yahoo does away with passwords, moves towards end-to-end encryption

Yahoo is set to take the first step towards "eliminating passwords" by introducing a new approach, called "on demand" passwords.

Like two-step verification process, users will be sent a unique time-sensitive code through an app or a text message to their phones when they want to log in. However, users will not be required to type in the primary password first, reported The Verge.

The report said that "on demand passwords" will eliminate the permanent password tied to your email account and you can just hit the "send my password" button to get a unique password delivered to your phone, whenever you want to log in.

The new sign-on method is available now.

Yahoo VP Dylan Casey hailed the feature as "the first step to eliminating passwords."

Along with "on demand" passwords, Yahoo also flaunted a working version of its new "end-to-end encryption" system at South by Southwest, aimed at making the act of encrypting emails far easier. It's built off of a Google-made Chrome extension that's still in the alpha stage.

However, the system won't be automatically enabled for every email.

Yahoo expects to have end-to-end encryption online by the end of the year.