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How secure is LDAP

I have just signed up with this list and am new to LDAP.
Can someone throw some light as to how effective can LDAP be 
in terms of  "hacking prevention".

I think after LDAP is configured, the system paswords are not stored 
as flat-text files [encrypted], but are maintained in LDAPs Database.

If this is true then it should be  more difficult to hack passwords stored 
in a  DB as compared to a flat-text file.

If my above understanding is true, then LDAP would feature as a security 
solution too, appart from being a very good Directory Service.

Some inputs / views / clarifications please.