The basic concept is as follows: A user has an account on an OpenID server. This account provides them with a unique URL (such as myusername.openidprovider.com). When the user comes to your site, they are presented with the option of entering this URL. Your site then communicates with the OpenID server, asking it to verify the identity of the user. If the user is logged into their OpenID server, the server communicates back to your site, verifying the user. If they are not logged in, the OpenID server will ask the user for their password. At no point does your site record, or need to record the user's password.