The Question is:
Is there a method of encrypting passwords that are passed from one node to
another over the network such that they cannot be read by a network sniffer?
The Answer is :
If you have untrusted accessors (and an unencrypted network), you have
potential vulnerabilities to eavesdropping.
Yes, various approaches exist for obscuring the contents of network
packet traffic. SSH, SSL, and hardware-level packet encryption are
some of the available options.
You can also work to make (untrusted) access to the broadcast network
medium more difficult.
Please contact Compaq services for assistance with configuring your
network to meet your needs.