Besides boring old SSL, bonchat.org uses a javascript implementation of AES to encrypt chat client-to-client. There are no cookies, no sessions, and no account registration. You never even send your password or plaintext username to the server.
If you chat with someone who knows the same password, you get a simple HTML/Markdown web chat. If you chat with someone using a different password you get gibberish. That's it. :)
It has a number of glaring flaws and no marketability, but by golly it's secure!