The protocol is redundant or rather non functional due to the technology stack of the EVM.
All data based on Ethereum Virtual Machine is public, even if the visibility modifier for that particular variable is marked as private, as such private information, such as a password should never be stored on the EVM.
The protocol is not secure in that the structure of the code does not allow users to store passwords privately
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I would recommend a cryptographic based storage system in which passwords are first encrypted with a secure, preferably provably secure function.
A privacy based EVM, such as the oasis protocol can also be used.
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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