Authentic assessment evaluates students' skills and abilities through performance tests and portfolios that demonstrate tasks in real-world situations. It promotes higher-order thinking and directly shows what students have learned through application and construction of knowledge. Traditional assessment involves impersonal, standardized testing that compares students and focuses on choosing correct answers, rather than developing responses or allowing freedom in showing abilities. Authentic assessment identifies strengths and weaknesses through student and peer evaluation, while traditional assessment relies solely on the teacher's subjective evaluation.