Although the variable is marked private anyone could view it on the chain. On top of that they would also be able to view the TX that submitted it
Anyone can read the storage of this contract using foundry, on top of that they would also see the TX that submitted the string.
Anyone can access the password.
Manual review
This code is useless as nothing is private on the chain, and nothing should be kept with the assumption that it can be private.
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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