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The DB Security Manager supports password encryption. The password algorithm can be defined in the application configuration.
Simply add the passwordalgorithm setting to your existing configration:
<application> <securitymanager> ... <passwordalgorithm>SHA</passwordalgorithm> </securitymanager> ... </application>
The possible values are, e.g. SHA, SHA-256, SHA-384, SHA-512, MD5, MD4, MD2 and all supported Java message digest algorithms, as described here.