There are several tradeoffs to consider. Firstly, sending raw passwords via an SSL link is quite safe if and only if the client correctly verifies the serverβs SSL certificate. However, even with the correct validation of the SSL certificate, sending the raw password to the server is not completely ideal. A hacked server can set a user password. Because passwords are often reused elsewhere, this type of exposure can have serious consequences.
The advantage of SRP is that it avoids both of these problems. The user password never leaves your computer, and proper SSL certificate verification is not required. SRP mutual authentication properties make SSL certificates redundant. In fact, some applications use this to completely avoid the headaches associated with properly managing SSL certificates. They simply use anonymous self-signed certificates on the servers for data encryption purposes only and leave authentication to the application level at the application level.
In particular, to your question, I think that the applicability of SRP to low-level use at the application level really depends on your application. It can function well in both arenas, but where it works best it really comes down to a certain set of design limitations that you work with.
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