The 3-Legged OAuth is the default one, it relies on each user to allow the application (”JIRA wants to access information from this Confluence page. Allow/Deny”) and 2-Legged OAuth is a variation of the normal 3-Legged OAuth, where the step C and D in this diagram are not required.
The difference is the number of dances done. In 2-Legged, Instance A and B are setup to trust each and the trust at that point is implicit for all users. There is no third leg (no more ”JIRA wants to access information from this Confluence page. Allow/Deny”), but it requires that both applications have the same user base.
I hope it helps.
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