In a scenario for secure logon credential exchange, which method is correctly demonstrated?

The correct method for secure logon credential exchange involves each department sending a hash of their password for comparison. This approach enhances security by ensuring that actual passwords are never transmitted over the network, reducing the risk of interception by malicious actors.

Hashing transforms the original password into a fixed-length string of characters, which is typically unique to the input data. When a department needs to verify a password, the system can hash the user-entered password and compare it to the hashed value stored in the database. This way, even if the hashes are intercepted, there is no straightforward method to reverse-engineer the original passwords.

This method also allows for effective authentication without exposing sensitive information, maintaining confidentiality and integrity. The use of hashes ensures that even if one department's hash is compromised, it does not provide access to the actual passwords or the hashes of other departments, thus containing potential damage in the event of a security breach.