Password stored on the smart contract can be read by anyone.
Private Variables stored on a public blockchain smart contract can be accessed using storage slots.
The application fails to securely store the password of users. Anyone can access stored password.
Ethersjs
Use off-chain cryptic hashing algorithms on sensitive data before storing it on-chain.
Private functions and state variables are only visible for the contract they are defined in and not in derived contracts. In this case private doesn't mean secret/confidential
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