What is OAuth?
While OpenID and WS-Federation focus on delegating user identity (or a collection of identity claims), OAuth was designed to address a different and complementary scenario, the delegation of user authorization. In few words, OAuth allows a client application to obtain user consent (i.e. Authorization for consuming a private resource as access tokens) for executing operations over private resources on his behalf.
If you want to know more about how OAuth works, you should read the following posts
OAuth .NET Library
Alex Henderson (Aka Bittercoder) has written a pretty good OAuth library in .NET for implementing an OAuth consumer and service provider. The library is available here under a MIT license (do wherever you want with it), and it is very easy to use. Alex has definitively made a very good work.
OAuth WCF Channel using REST Starter Kit’s RequestInterceptor
WCF channel implementation for OAuth mounts on top of his library and it basically transforms a OAuth token into a .NET security principal that can be used later within the service implementation. The channel is implemented as a RequestInterceptor, one of new features introduced in the REST WCF Starter Kit. This interceptor basically captures the request at channel level and performs all the validations required by OAuth. The following sample illustrates how the interceptors can be plugged into an existing service host (service.svc),