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Oracle Password file

Hey guys when we create password file like
orapwd file=abc password=xyz entries=10
What does exactly this password file does can you tell me in detail.
one last question on this as i mention xyz as password for sysdba, so all users having sysdba privilege, likes to do sysdba activities must use "xyz" as the password or thyere own password. Thanks alot for your help in advance
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The password file is an operating system file used to store passwords for database SYSDBA or SYSOPER access. The password file is used to authenticate DBAs who must connect remotely to a database and need to perform administrative tasks such as starting and stopping the database. To perform SYSDBA or SYSOPER tasks you need to be able to connect when the database is not open. If a database is not open the passwords stored within that database are not accessible. By storing the administrative passwords in a separate file (orapwSID), Oracle enables remote authentication even when the database is not running.

An example of this would be Oracle Grid/Enterprise Manager starting and stopping a database.
Users connecting remotely that need to run SYSDBA or SYSOPER tasks must use the password stored in the password file.
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Suppose a user sam with password sam. I created a password file.              Orapwd file:abc.com password:boy entries:10.                                    Now if user sam needs to do sysdba activity so sam needs to give which password sam or boy.                                Lastly is this password file used for remote users only and when database closed or database open also
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Hi,
When the password you give when you create the password file is the sys password, so it cannot be sam's password.
password file is used to check remote connections as sysdba - wether the database is open or not.
You may have cases where the password si different in database and in password file (if you copy an old password file for example) and then: password file password is used for sysdba connections and database password is used for non-sysdba connections.
But when you change password with alter user, then both are changed.
Regards,
Franck.
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Addition:
Of course if the role was SYSOPER the connection would be:
CONNECT SAM/SAM@ORCL AS SYSOPER;
What is the use of
remote_login_passwordfile=EXCLUSIVE or shared or none.
Difference between them and which one is used when