Hi Oriane,
Regarding on your question, I think the answer is:
Without using any transport layer security approach(such as SSL/TLS), the
password(just like any other textbox field on page) are send via clear text
without any encrypting or hashing.
If you use basic authentication of HTTP protocol, by default it also only
perform a base64 encoding which is easy to decode. Therefore, if
security(confidentiality) is critical for your case, you should consider
apply SSL/TLS(https) on the login entry.
Sincerely,
Steven Cheng
Microsoft MSDN Online Support Lead
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