I am working on a REST system, and am about to start developing a way in which a user authenticates in order to use the service. After researching hashing methods, I have read WikiPedia - Basic Authentication
However I have some questions about implementation. If I understand correctly, the username and password will be encoded into base 64 and sent in to the server. This is where my confusion lies.
Once the server receives such a request, I assume I must decide the base64 and check it against the hash. However, once this is done, I don't understand what must be done to verify the user for future requests.
Must I check this base64 sent on every communication? I don't want to save the base64 on the server to prevent against having to check the password every time because this would defeat the purpose of only having hashed passwords. In addition, my service is SSL only, so is there any down side to passing in the username and password as a parameter in the rest request as a means of authentication, instead of in http headers?