Digest authentication introduced in XDB 12c for accessing XDB repository
Starting with 12c Release 1 (12.1), Oracle Database supports not only basic authentication but also digest access authentication, for accessing Oracle XML DB Repository.
Digest access authentication, also known as digest authentication provides encryption of user credentials (name, password, etc.) without the overhead of complete data encryption.
Note that user credentials are case-sensitive. In particular, a user name to be authenticated must exactly match the name as it was created (which by default is all uppercase).
The digest authentication is the default for a database natively in 12.1, while upgraded database to 12c still have the basic authentication as default, but it can be switched