I have outside contractors that I need to be able to update the kanban board/edit issues, but only for one project. I know there is a way of allowing anonymous access, but I am confused on how to do this and if I can restrict it so that only the one project is accessible.
You don't want anonymous access - it will let people change stuff without logging in - untracable and you can't restrict it to just your users.
To limit people to a single project, you probably need to unpick the default settings which are pretty much "if you can log in, you are a user in every project" becasue the group "jira users" is used to log in *and* as a default "these people can use the project" setting too.
Once you've unpicked that, you can create users who can only log in, then add them to the single project you need them in.
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