Per the OpenId Homepage: "OpenID is an open, decentralized, free framework for user-centric digital identity". You could call it "single sign-on for the world wide web", since OpenID provides a method for authenticating to web sites without creating a new login and password for every site. While similar initiatives have come up in the past (most notable Microsoft's "Passport"), this is not a proprietary system, but a standard.
The official F.A.Q. on OpenID is at http://openid.net/wiki/index.php/FAQ. Another good F.A.Q. is on PHPBB's website.
I'd say yes - while it's in the nascent stage, much as blogging was in 2002, it's going to see wide adoption in the next two years. Like RSS, OpenID saw early adoption by bloggers, because it offers a very simple way for users to leave comments on blogs without going to all of the trouble of setting up an account. Now Sun, Microsoft, AOL and Yahoo! have all joined the bandwagon, so, like RSS, it will grow out of the hardcore blogging community into standard adoption.
OpenID's are available from any site that offers them, such as Techcafeteria. A fairly good list of established providers is at IWantMyOpenID.org.
Detailed instructions for setting up an OpenID account here at Techcafeteria are at http://techcafeteria.com/openid_howto.htm. But here are the basics:
http://openid.server.com/?user=yourname
Many places, and the list will start growing phenomenally. Currently, OpenID is a native function of Livejournal blogs,a nd an add-in function for Drupal, Joomla, Wordpress, PHPBB and other blogging/community platforms. Microsoft, Sun, Yahoo! and AOL have all committed to the platform. Upcoming releases of many of these web-based platforms will incorporate OpenID natively. A OpenID directly, which is by no means complete, lives at http://openiddirectory.com/.
Not inherently. It can be, if the service doesn't require any verification of your identity. But so can signing up for any service that will let you input inaccurate information in order to establish an account.
For the user, this has the security benefits of not having to trust every service on the internet that you want to use to manage your authentication. They don't ask for your password or store it - that is all handled solely by your provider. But any other issues, such as what this web site will do with your email address, if you provide it (and it might well be required still for access), or whetrher their application is secure, is all the same as if you hadn't used OpenID.
That's a good question. While you need to establish your URL with an OpenID provider, you can use an alternate URL from any web server that you can edit pages on - the server doesn't have to know the first thing about OpenID. All you need to do is create a page that includes two lines in the meta section of the header that will refer back to your OpenID provider. Then, if that provider goes down, you just quickly establish a new account with another provider and update your web page. Since the sites you've registered with all know the ID from your server, not the providers, this is fairly seamless.
The same way you do today (OpenID is not gping to help much with this problem). For example, there's nothing stopping you from requiring that a user respond to a Captcha after they have authenticated via OpenID.
When you set up your OpenID login, you require that the email address be submitted with the profile information. Then you email them to verify the request before establishing the account.
If you have a server that you control (e.g., have root or full administrative access to), and a decent knowledge of how to install software on the server, there are a number of ways to do it, all detailed at OpenIDEnabled.com.