What does OTP mean to provide authentication and security to customers?

Passwords are used to open any application or software and also protect your data. You should create a strong password so unauthorized users cannot open the application or steal information. Your password should contain numeric and alphanumeric characters. According to a recent survey, nearly 40% of users said their passwords were stolen.

If you are an owner and if your employee’s password is identified by the hackers, then you may suffer a huge financial loss.

These hackers can extract sensitive and critical information about your company. So, to access information, the holders should use something more than a password. Unauthorized users will be unable to extract information if they enter another code. Hence, OTP is also used to open any application or software along with a password.

What does OTP mean?

An OTP is known as a dynamic password, consisting of a string of characters that are automatically generated. It is used only for a single transaction. It is a set of characters sent to the user of the account through emails, notifications, or SMS.

It is a procedure for authenticating your web-based services. Users cannot attempt to access your services without your authorization. OTP is even safer than regular passwords as it is generated by the system. The passwords are generated by the users. What does OTP mean, If the password is weaker, then information can be easily extracted.

The procedure for OTP

Many people are not able to differentiate between the terms “OTP verification” and “OTP authentication. The OTP is a mechanism with an authentic server. It is a part of the system that the user is accessing. The user enters the required information and performs the transaction. Then, the system examines the information entered by the users and provides an OTP to authenticate the transaction. It is a type of code produced by the server and sent to the user via SMS, e-mail, etc. Then, the user enters the OTP and the server accesses the code to detect if the user is authentic. Sometimes, OTP is also entered using Push notification.

 

 

The advantages of using OTP

It can be used conveniently using tools such as SMS, email, etc. It can be used in a convenient way.

It cannot be hacked by anyone as it is safer than a static password. The user can just use it once. Even if the hacker is trying to access your OTP, they cannot enter it to extract data as it becomes invalid after a transaction.

What does OTP meanfor 2 Factor Authentication?

To open any account or application, you should only enter your login details, such as passwords or usernames. This mechanism only refers to one-factor authentication to be used only once. When you enter OTP and your password to perform any transaction, it is known as 2-factor authentication.

So, when a user must enter two codes, then they cannot easily extract or steal information. They cannot extract information by merely stealing login details and accessing the accounts of the users. So, 2-factor authentication is used to manage and secure sensitive information or data. For example, if you want to access Gmail from another device, then an OTP is sent to your mobile to verify if you are an authentic user. You should enter the OTP so you are able to access Gmail. If you enter the correct OTP, then the Gmail account opens automatically.

 

 


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