The database system uses passwords to authenticate users.
For authentication, the database system uses a challenge/response procedure (SCRAM-MD5). This procedure ensures that no passwords are passed unencrypted between the client (database tool or interface) and the database instance.
This procedure only encrypts passwords. You can use SSL/TLS to encrypt the data transmission (see Data Encryption).
Client and database instance use version 7.6 or higher of the database software.
If either the client or the database instance uses a lower version of the database software, the older, unencrypted authentication procedure is used.