I'm trying to wrap my head around 3-legged authentication to secure a restful API.
Currently I have a client application at app.host.com which needs to be accessed by multiple users with different account permissions and data, as well as the JSON RESTful api which holds all data at app_api.host.com
For 3-legged auth, I understand I first need a consumer key and secret belonging to the client app.host.com... I also understand an unauthorized request token must be provided by the service provider, which is given to the client, which is then redirected back to the service provider for authorization with a login dialog.
So does the login dialog then exist as a user interface on the API host at app_api.host.com? Doesn't this defeat the purpose of me building a purely JSON restful API separately to the client?
Or can I build the login dialog on the client which would then post the user/pwd details to another auth endpoint on the API and provide a 200 code when the request token is authorized? And then in turn the client would ask for permissions from the user which would again be posted to another endpoint which then responds with the appropriate access token for that user?
TL;DR: Am I able to have the login dialog exist on the client, which then posts data to the service provider? All guides I've read suggest having the dialog on the service provider, which in this case would defeat the purpose of having the api as a separate app altogether. How should I go about building this? Any available guides?
OAuth 2.0 defines different flows to use with different clients, depending on how much you trust the client.
Authorization code
The first and most secury flow is the authorization token flow. It is used with a traditional web application in which you can store secrets relatively securely (only people with admin privileges should have access to the client ID and secret stored in the configuration).
When the user (resource owner) wants to authenticate, the user-agent is redirected to the authorization server which belongs to the domain of the resource server (the data the client wants to consume, for example Facebook or Google). The authorization server presents the user with logon UI. When the user authenticates successfully, it presents the consent UI to ask if the user wants the client application to access the resource. If the user consents, the user-agent is redirected back to the client application with an authorization code. The client application can now use this code, its client ID and secret to talk to the authorization server directly and get an access token. In this flow, the access token is never in the hands of the user-agent.
Implicit flow
In the implicit flow, the user-agent (here typically a native (mobile) application or JavaScript client) redirects to the authorization server or opens a browser window to navigate to the authorization server. When the user authenticates successfully and grants permission to the client application, the access token itself is returned to the client. So the user-agent never sees the username and password the user enters (as this happens on a HTML page that is controlled by the resource server), but does have control over the access token.
Resource owner password credential flow
Here the user-agent is fully trusted and asks the user for username and password. It then communicates with the authorization server to get a access token. Even though the user-agent knows the credentials of the user, it only uses them once to get an access token. It does not need to send them along each request to the resource server.
So to answer your question, you can build the login dialog in your app if you think your users will trust your application enough to give you their credentials. Otherwise you should probably go for one of the other flows. You can read more on OAuth 2 here and here.