The difference between OTP, TOTP and HOTP

Traditional username and password authentication methods are increasingly vulnerable to attacks, as highlighted by a significant number of incidents involving compromised passwords, prompting the adoption of more secure solutions like One-Time Passwords (OTPs) within Multi-factor Authentication (MFA) frameworks. OTPs enhance security by generating unique, dynamic codes for single-use verification, contrasting with static passwords. There are two main types of OTPs: Time-Based OTP (TOTP), which relies on a time factor for generating temporary passwords, and Hash-Based OTP (HOTP), which uses a counter value to ensure password uniqueness. While TOTP is considered more secure due to its time-sensitive nature, it can be inconvenient for users and is dependent on device availability, whereas HOTP is more user-friendly but may be vulnerable if intercepted passwords are used within the allowable window. Incorporating additional MFA measures such as biometric and geolocation authentication alongside OTPs can further strengthen security, offering a balanced approach to safeguarding digital identities.