LDAP is a fast database tailored to deliver bits and pieces of information to users and daemons that need them. You can store login/authentication information in LDAP, though LDAP itself does not authenticate.
That's not quite correct. A secure LDAP installation will not expose any passwords or password hashes to users. Services which use LDAP as an authentication resource actually search for the user in the directory and attempt to bind using their DN (from the server) and password (from the user). If the bind succeeds, then the user is authenticated. The LDAP server did the authentication.
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