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Into the "Passport authentication" lets you use Microsoft's passport service to authenticate users of your application. Though your users have signed up with a passport, and you configure the authentication mode of the application to the passport authentication, then all authentication duties are offloaded to the passport servers.
The passport uses an encrypted cookie mechanism to indicate authenticated users. Though users have already signed into passport when they visit your site, they'll be considered authenticated by ASP.NET. Else they'll be redirected to the passport servers to log in. If they are successfully logged in, they'll be redirected back to your site.
Authentication: This is the process of ensuring the user's identity and authenticity. ASP.NET allows four types of authentications:
Authorization: This is the process of defining and allotting specific roles to specific users.
Confidentiality: This involves encrypting the channel between the client browser and the web server.
Integrity: This involves maintaining the integrity of data. For example, implementing a digital signature.