Knowledge Base Discussion about security token

cryptobi

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A security token is a small secure electronic device that usually has zero or one button and a small LCD or OLED screen.

The device has a very precise clock inside it which generates a unique code according to the time and date (number of seconds elapsed since a pre-determined time reference).

Websites, financial services like ATM's and bank cashiers and other secure environments that use security tokens run an identical precise clock on their end.

In order to access these secure environments the user must type the code shown on the screen on the service's interface. The service will then compare the code to its own generated code using its internal clock. The codes must match in order to grant access.

The idea is to require a proof that the user is physically holding the security token. This protects the service against phishing attacks, for example, because having the correct password no longer guarantees access to the protected service.

2FA or two factor authentication is the most popular name to the security schemes that use security tokens. As the name suggests, 2FA requires a second secret be provided in order to grant access to some resource.

The codes generated by security tokens are also called one time passwords (OTP's).

In cryptocurrency, security tokens have many uses, including the protection of exchange accounts, crypto wallets and other resources.

Based on Cryptocurrency Knowledge Base Topic security token
 

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