The new method uses cookie certificates that are unique to each internet domain. This avoids the basic .htaccess authentication behavior of transmitting your password across the internet for every operation. Now, even when authenticating a user in a normal web domain, the user's password is only ever transmitted across a secure channel (secure.dantom.com), which then issues a certificate for use in the target domain.
Don't be scared off by all this verbiage. The bottom line is if you need to know the identify of the user in a CGI application, you can do so by inserting the line CGI/authenticate=1.