What is One Time Password?

OTP stands for “One-Time Password”, which is also known as One-Time PIN or Dynamic Password. It is a password for a computer or digital device that is used only once for one session or one transaction.

OTP or One Time Password is a 4 or 6-digit security code. For example, when you transact online or shop online on an e-commerce website, you will receive a security code via SMS from the bank on your registered mobile number after filling in the banking details. This security code is called OTP. This OTP can be used only once for any session or transaction. That is, once used this code cannot be used again. So you will need a new OTP to complete a new session or transaction.

OTP is a mechanism that provides safe entrance or safe logging in on any network or service. Every time it’s a unique code generated for accessing the network or service securely. It has a unique specialty that does not work again and again, it changes after each usage session & is a different and unique code each and every time.

What is OTP?

OTP refers to a one-time password or a one-time pin. It is a new model introduced as a security key for secured work or for accessing personal information. It is a temporary one-time password created for safe use. OTP is created only for one session at a time and is highly secured or can say a confidential code for security purposes. OTP is usually a 4-6 digits code used as a password for secure payments or for some official works.

Nowadays computers, mobile phones, and many such applications are working on an OTP basis. 
Basically, there are two types of OTP generated they are HOTP (Hash-based message authentication code HMAC, which in Lyman’s terms HMAC-based One-Time Password) & TOTP (Time-based One-Time Password).

It is a security token generated by the user themselves for easy recognition as the only person to access the file, network, or service.
OTP is also said to be one-time generated dynamic passcode or password to go through or to safely access a file or a service.

Uses of OTP

• OTP is commonly used by banks to authenticate users before allowing access to online banking services or conducting financial transactions.
• E-commerce platforms also use OTP. like Online merchants use OTP to protect customer accounts and prevent fraudulent transactions.
• Social media platforms use OTP to verify the identity of users and prevent unauthorized access to user accounts.
• OTP can be used to reset a forgotten password. where a user is sent a code to their registered email or phone number to verify their identity before allowing a password reset.

Advantages of OTP

• OTP provides an additional layer of security by requiring users to enter a unique code that is valid for only one login session or transaction, making it harder for unauthorized users to access sensitive information.
• It helps to protect against hacking and phishing attacks by making it more difficult for hackers to access a user’s account.
• It is Cost-effective Compared to other forms of authentication( such as hardware tokens or smart cards). OTPs are relatively cheap to implement and they can be easily integrated into existing applications and systems.

Disadvantages of OTP

• To receive an OTP, users must have access to a device and a network connection. If a user’s device is lost or stolen, or the network is unavailable, the user may not be able to access the OTP and may be locked out of their account.
• OTP is only valid for a limited time usually ranging from 30 seconds to a few minutes. If a user does not enter the OTP within the specified time frame they may need to request a new OTP, which can be inconvenient.

Conclusion

OTP is a type of secret password. So it should not be shared with anyone. It is very sensitive so you should not share OTP even when asked by another person. Fraud people often ask for this OTP so that they can control your account, in such a situation you should not share your OTP with anyone.
Overall, OTP is a cost-effective and convenient way to increase security and protect sensitive information from unauthorized access.

FAQs

Q1. How long is an OTP valid?

Ans: The validity period of an OTP varies depending on the implementation, but it is typically between 30 seconds to a few minutes.

Q2. What happens if an OTP is expired?

Ans: If an OTP is expired, it cannot be used for authentication or transaction. The user needs to request a new OTP to complete the process.

Q3. Can an OTP be reused?

Ans: No, OTP cannot be reused as it is generated for a single login session or transaction.

Q4. What is the format of OTP?

Ans: OTP is a combination of letters or numbers.

Q5. What is 2FA?

Ans: 2FA means Two-factor authentication. It is a security process that requires two forms of identification before granting access to a system or service.