The SRP protocolPart 3 is going to be a little more technical and well provide you with the some of the important details to understand, but if your intrigued, curious and willing, take a look at the original Whitepaper -
http://srp.stanford.edu/ndss.html.
The SRP protocol combines techniques of zero-knowledge proofs with asymmetric key exchange protocols and offers significantly improved performance over comparably strong extended methods that resist stolen-verifier attacks such as Augmented EKE or B-SPEKE.What follows is a complete description of the entire SRP authentication process from beginning to end, starting with the password setup steps.
Why does this sound to me like what Paypal is trying to do with its recent patent on speeding up cryptocurrency transactions...