softwaretoken

A software token is a digital authentication factor generated by software running on a user’s device, such as a smartphone or computer, that serves as a second factor in multi-factor authentication. Unlike physical hardware tokens, software tokens reside in applications and do not require a separate dedicated device.

The most common implementations are time-based one-time passwords (TOTP) and HMAC-based one-time passwords (HOTP). In provisioning, a secret key is delivered to the app (often via a QR code) and stored securely on the device. The app then generates a short-lived code: TOTPs are typically valid for about 30 seconds, while HOTPs advance with each authentication event. Some software tokens support push-based approvals or other mechanisms, but code-based TOTPs and HOTPs remain the standard model.

Software tokens are used by consumer authentication apps such as Google Authenticator, Microsoft Authenticator, and Authy, as well as by enterprise identity providers as part of MFA. They can operate offline, without a network connection, but provisioning and backup often require a network or cloud services.

Security considerations include protecting the device with strong security measures, secure storage of the secret key, and careful handling of backups and device transfers. If a device is lost or compromised, the associated tokens may be at risk, necessitating re-provisioning or credential recovery. Some deployments implement additional phishing-resistant controls to mitigate targeted attacks.

Advantages of software tokens include cost savings, ease of deployment, and no separate hardware to manage. Their drawbacks include reliance on the security of the user’s device and potential complications in recovering access across devices or platforms.