NTLM

In a Windows network, NTLM (NT LAN Manager) is a suite of Microsoft security protocols that provides authentication, integrity, and confidentiality to users. NTLM is the successor to the authentication protocol in Microsoft LAN Manager (LANMAN), an older Microsoft product, and attempts to provide backwards compatibility with LANMAN. NTLM version 2 (NTLMv2), which was introduced in Windows NT 4.0 SP4 (and natively supported in Windows 2000), enhances NTLM security by hardening the protocol against many spoofing attacks, and adding the ability for a server to authenticate to the client.

Microsoft no longer recommends NTLM in applications:

"Implementers should be aware that NTLM does not support any recent cryptographic methods, such as AES or SHA-256. It uses cyclic redundancy check (CRC) or message digest algorithms (RFC1321) for integrity, and it uses RC4 for encryption. Deriving a key from a password is as specified in RFC1320 and FIPS46-2. Therefore, applications are generally advised not to use NTLM."

While Kerberos has replaced NTLM as the default authentication protocol in an Active Directory (AD) based single sign-on scheme, NTLM is still widely used in situations where a domain controller is not available or is unreachable. For example, NTLM would be used if a client is not Kerberos capable, the server is not joined to a domain, or the user is remotely authenticating over the web.