"Under Kerberos, a client (generally either a user or a service) sends a request for a ticket to the Key Distribution Center (KDC). The KDC creates a ticket-granting ticket (TGT) for the client, encrypts it using the client's password as the key, and sends the encrypted TGT back to the client. The client then attempts to decrypt the TGT, using its password. If the client successfully decrypts the TGT (i.e., if the client gave the correct password), it keeps the decrypted TGT, which indicates proof of the client's identity."
If the password is sent in clear text initially to the KDC, can't someone on the network sniff out the password and intervene in the middle of the transmission? Or perhaps I am not getting how it works?