How to use SCRAM authentication in YSQL?

[Question posted by a user on YugabyteDB Community Slack ]

In this case, we’ll change the password of yugabyte user to yugabyte but in SCRAM instead of default MD5.
You need to change the authentication of YSQL to use scram-sha-256 for authentication. This is a PostgreSQL config, so you have to use [–ysql-pg-conf]https://docs.yugabyte.com/latest/reference/configuration/yb-tserver/#ysql-pg-conf.
Put this line in your gflag file:

ysql_pg_conf=password_encryption = scram-sha-256

Then you should change --yb_hba_conf to use scram-sha-256. In this case, I put:

--ysql_hba_conf=host all postgres 0.0.0.0/0 trust, host all all 0.0.0.0/0 scram-sha-256, host all postgres ::0/0 trust, host all all ::0/0 scram-sha-256

Which says to require authentication for all users except postgres role.
Then we connect to the server and change the password for role yugabyte:

./bin/ysqlsh --username=postgres
postgres=# \password yugabyte
Enter new password:
Enter it again:

And verify that the password was hashed with SCRAM:

postgres=# SELECT
    rolname, rolpassword
FROM pg_authid
WHERE rolcanlogin;
 rolname  |                                                              rolpassword
----------+---------------------------------------------------------------------------------------------------------------------------------------
 postgres |
 yugabyte | SCRAM-SHA-256$4096:dnsF94xZmdJYZHoW5wXtdA==$4bxAFNHgmz9VXIWUxijReO4zyJ0DnX/iLNndKq32WOg=:TSXL3EF0fCroBXTndmp16Wle4F1MH+qc1P1iVFkqMQ8=
(2 rows)