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MySQL:  GRANT ALL:  SHOW GRANTS shows GRANT USAGE and does not show IDENTIFIED BY clause

HarkenBanks asked
Last Modified: 2012-05-08
I just created a new user (user@localhost) via a GRANT ALL statement.  When I do a SHOW GRANTS for this new user, I get two lines in the result as follows:

mysql> create database eg;
Query OK, 1 row affected (0.05 sec)

mysql> grant all on eg.* to user@localhost identified by 'password';
Query OK, 0 rows affected (0.00 sec)

mysql> show grants for user@localhost;
| Grants for user@localhost                                                          |
| GRANT USAGE ON *.* TO 'user'@'localhost' IDENTIFIED BY PASSWORD '5d2e19393cc5ef67' |
| GRANT ALL PRIVILEGES ON `eg`.* TO 'user'@'localhost'                               |
2 rows in set (0.00 sec)


I'm wondering if this is the normal or expected result.  There are a few reasons why I am uncertain, namely,
(1)  I would expect to see exactly one line, that one line being the exact statement I issued,
(2)  I don't know what GRANT USAGE is, although I take it that this simply gives the user the permission to log in to mysql (without any access to any databases, any permissions to do anything except log in), and
(3)  I don't know how the two lines above work in concert to grant the user the appropriate permissions (ie, those I assigned him).  

Insight much appreciated.  Thank you.  
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This clears up how things work -- which was really the issue (my lack of understanding).  Thank you!

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