Well, not really protection against the reader handing out free passwords… it will definitely do that regardless, because the PACK is sent by the tag back to the reader AFTER the reader has attempted authentication with the password… so basically, at best, it’s a bandaid after the wound has already been inflicted… but in short, it’s no protection really.
I’m not sure what you’re asking, but 1) there is no encryption going on here… the password option is a simple 4 byte security check (and a bad one at that)… so don’t think a featured called “password” is really going to do a decent job of protecting the data on an NTAG216 chip… 2) depending on how the chip is configured, you cannot “wipe” it… if you have set a non-default password and set your AUTH0 byte to anything lower than E5, then you will need to authenticate before you can change your password. If you have set AUTH0 to protect user-writable memory, then you will need to authenticate before you can write any changes to those protected user memory pages.