How does the OTP (one time password) work?

How does the OTP (one time password) work?

As the name says, One Time Password, it means can be used only once and cannot be reused.  The probability of guessing static password or attack on static password is more comparatively to One Time Password. That is why most of the organizations prefer to use OTP for protecting their Data . One Time password can be obtained for the device which keeps on displaying a new number after a regular interval of time, normally it is 60 seconds and it’s validity is based on the type of   OTP. WORKING : OTP authentication process works on a simple method as when a website wants to validate a user, they usually ask the user to enter their mobile number for verification. When the user enters their number and clicks on the submit button, a token or random code is generated and delivered through Bulk SMS Services to the users mobile phone in real-time. Once user gets the randomly generated code, they enter that code on the website and validate himself/herself  .

There are different type of authenticators available and these are : Hardware tokens, software tokens and on demand token(can be receiver on mobile and through email).

The authentication process includes one Authentication Manager which validates the token(OTP) inserted by an user for an authentication. A token which displays the number for an user. Authentication manager uses an Algo to generate a number and same algo is used by hardware or software token, so the OTP on both sides(Auth manager and tokens) can be matched and validated.     For detailed description on Algorithm of OTP,

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