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iCloud Keychain: Mobile two-factor authentication
Now for something interesting: To use iCloud Keychain, the so-called cloud-based password storage and security feature, you are required to build trust between your Mac and iPhone. Approving a Mac as a secure computer to use remembered passwords requires a two-factor authentication with an iPhone or iPad.
iCloud Keychain: Using mobile to approve password syncing
Using the "send to iPhone" over-the-air option, an iPhone or iPad can approve a Mac to use passwords or not. This has to be performed on as many devices that you want to use your cloud-based passwords with.
iCloud Keychain: Password support
Among other things, iCloud Keychain allows you to forget the need to enter passwords -- at least on your trusted devices. Using the in-built browser Safari, Mavericks can generate random passwords that are entered automatically and stored in the cloud.