encryption of password (how to do it)?

Hi!
Oracle 8.1.7 on AIX and Panther 'Application Server' on another AIX server
(2 tier architecture).

When starting application, first user connects to UNIX server with private login name. After that he is connected to 'Application Server' which connects to the database. For starting 'Application Server' user has database connect string and password (plain text) in .profile (as env variables).
Do you have suggestions (experience) how to make a secure connection?

TIA,
        Sonja

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