Hi,
You may find that
How Linux Stores and Manages User Passwords is useful to you as admin;
Quote:
Have you wondered how Linux efficiently manages a multi-user environment? In this article we explain how Linux stores and manages user passwords and logins.
Exploring /etc/passwd file
When a user enters a username and password, Linux checks the password entered against an an entry in several files in the “/etc” directory.
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Hope this helps.
Have fun & enjoy Gnu/Linux!