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Thanks for the explanation, sounds like Nostr then, basically those linkingKeys acting like like npub. Wonder whichever server chooses that method for sign in why do not they fall back on nostr? Or is this emerging as a competitor to nostr itself?
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Nostr gives you an identity on a separate system. With LNURL-auth, the lightning wallet is the identity. I'd call that a competitor to parts of Nostr. Nostr NIP-98 maybe. But it's probably not a competitor to Nostr NIP-46 which most websites use to auth via Nostr. But it does win against Nostr NIP-26 which was essentially abandoned.
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I was wondering the same thing so I looked it up.
Any website/app can implement LNURL-auth, the spec for it is here https://github.com/lnurl/luds/blob/luds/04.md
The auth works like this. Instead of taking the traditional username/password, LNURL-auth uses key based login. The user has to prove they control a domain-specific linkingKey derived from their wallet seed.
The procedure goes like this
So to answer your questions directly,