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One-Time Password

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link: Multi-Factor Authentication

One-Time Password

Diagram

OTP Diagram

Overview

A One-Time Password (OTP) is a unique, temporary code that is used for a single Authentication session or transaction. OTPS are an effective way to enhance security by mitigating the risks associated with static passwords. They are widely used in two-factor authentication (2FA) and Multi-Factor Authentication (MFA) systems.

How OTP Works

  1. Generation: An OTP is generated using an algorithm that ensures the code is unique and valid for only a short period or a single use.
  2. Delivery: The OTP is delivered to the user via a predefined method, such as SMS, email, or a dedicated authentication app.
  3. Usage: The user enters the OTP as part of the authentication process. The server verifies the OTP against the expected value.
  4. Validation: If the OTP matches the expected value, the user is authenticated. The OTP is then invalidated and cannot be used again.

Types of OTP

Types of OTP

  • Time-Based OTP (TOTP): Generates a new password at fixed intervals, typically every 30 or 60 seconds. The password is valid only for the duration of the interval.
  • Event-Based OTP (HOTP): Generates a new password based on a counter that increments with each new password request. The password is valid until it is used or a new one is generated.
  • SMS OTP: Delivered to the user via SMS. It is typically valid for a short period or until it is used.
  • Email OTP: Delivered to the user via email. It is similar to SMS OTP in terms of validity and usage.

Use Cases

  • Online Banking: Used for secure login and transaction verification.
  • E-commerce: Ensures secure payments and account access.
  • Enterprise Security: Protects access to corporate systems and sensitive data.
  • Password Reset: Provides a secure method for resetting forgotten passwords.

Pros/Cons

Pros

  • Enhanced Security: Provides an additional layer of security beyond static passwords.
  • Ease of Use: Simple for users to understand and implement.
  • Dynamic Nature: OTPS are unique and expire quickly, reducing the risk of interception and reuse.

Cons

  • Delivery Dependency: Relies on the availability of the delivery method (e.g., SMS, email).
  • Potential Delays: OTP delivery can be delayed due to network issues, impacting user experience.
  • Implementation Complexity: Requires secure generation, delivery, and validation mechanisms.

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