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[The Guardian] There is no moral high ground for Reddit as it seeks to capitalise on user data
(www.theguardian.com)
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Oauth 2 is an authorization standard, that's basically what it is meant for. It's intended to be used as a identification system for a client to be able to tell a first party hey I'm me through the usage of a third party without ever giving the third party to have your password.
Discord, Facebook/Meta, Google(most services), Soundcloud, all those use Auth 2 based API's, oauth 2 is used basically everywhere for the same focus that Reddit is trying to do
Like you said it can be dangerous if you authorize a third party app, honestly I'm willing to bet that rif and Apollo both used the oauth2 API at least in some part, otherwise I don't think it would have been able to allow you to upvote or downvote posts or post comments as you. A good way to tell if it was using it or not is if you had to login and it brought you to a page that said authorize this app with Reddit, if it showed that you were using oauth 2