passport-init.js

var LocalStrategy   = require('passport-local').Strategy;
var bCrypt = require('bcrypt-nodejs');
//temporary data store
var mongoose = require('mongoose');
var User =  mongoose.model('User');
var Post =  mongoose.model('Post');   
module.exports = function(passport){

    // Passport needs to be able to serialize and deserialize users to support persistent login sessions
    passport.serializeUser(function(user, done) {
        console.log('serializing user:',user.username);
        done(null, user._id);
    });

    passport.deserializeUser(function(id, done) {
        User.findById(id, function(err, user) {
            console.log('deserializing user:',user.username);
            done(err, user);
        });
    });

    passport.use('login', new LocalStrategy({
            passReqToCallback : true
        },
        function(req, username, password, done) { 
            // check in mongo if a user with username exists or not
            User.findOne({ 'username' :  username }, 
                function(err, user) {
                    // In case of any error, return using the done method
                    if (err)
                        return done(err);
                    // Username does not exist, log the error and redirect back
                    if (!user){
                        console.log('User Not Found with username '+username);
                        return done(null, false);                 
                    }
                    // User exists but wrong password, log the error 
                    if (!isValidPassword(user, password)){
                        console.log('Invalid Password');
                        return done(null, false); // redirect back to login page
                    }
                    // User and password both match, return user from done method
                    // which will be treated like success
                    return done(null, user);
                }
            );
        }
    ));

    passport.use('signup', new LocalStrategy({
            passReqToCallback : true // allows us to pass back the entire request to the callback
        },
        function(req, username, password, done) {

            // find a user in mongo with provided username
            User.findOne({ 'username' :  username }, function(err, user) {
                // In case of any error, return using the done method
                if (err){
                    console.log('Error in SignUp: '+err);
                    return done(err);
                }
                // already exists
                if (user) {
                    console.log('User already exists with username: '+username);
                    return done(null, false);
                } else {
                    // if there is no user, create the user
                    var newUser = new User();

                    // set the user's local credentials
                    newUser.username = username;
                    newUser.password = createHash(password);

                    // save the user
                    newUser.save(function(err) {
                        if (err){
                            console.log('Error in Saving user: '+err);  
                            throw err;  
                        }
                        console.log(newUser.username + ' Registration succesful');    
                        return done(null, newUser);
                    });
                }
            });
        })
    );

    var isValidPassword = function(user, password){
        return bCrypt.compareSync(password, user.password);
    };
    // Generates hash using bCrypt
    var createHash = function(password){
        return bCrypt.hashSync(password, bCrypt.genSaltSync(10), null);
    };

};