What is the benefit of OTP?


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With OTP, all our accounts like Google account, net banking account, bank account etc. are all safe. Especially if you are running a business, protecting data online is cruciaL. So, read more to understand how IT security implementation for your business is beneficial.

After filling out all details, an OTP code is generated when we make online transactions using net banking. This code can be used to recharge our mobile phones or to purchase goods. You must all have heard of OTP and probably used it. But do you understand why? It doesn’t matter if you don’t know what OTP is, because you’ll find out in today’s article What is One Time Password.

Why OTP is used?

OTP is a password that is completely different and safe from the normal password (the password that users create while creating their account). Like when we create our account on any website, we create our username and password, the password we create is very simple like our name or date of birth or anything else so that we can remember it easily. But in this, we are at risk from hackers because they can easily hack our passwords and steal our details.

Or it may also happen that a person who is known to you, if he knows your username and password, then he can also take the wrong advantage by using your account. So nowadays all banks, many e-commerce websites and online recharge websites have started using OTP so that the account of their users can be safe. OTP keeps your account safe and protects your banking and personal details from theft.

What is One Time Password or OTP?

A one-time password (OTP) is a 6-digit security code use to make online transactions.

After purchasing goods on the e-commerce site, we then pay with our ATM card. We also fill in our banking details during payment. Finally, a security code goes to your registered mobile number from the bank as an SMS, which we call OTP.

This code is found in the SMS. Only after you enter this code, your payment will be successful. Without this, you won’t be able to transact online.

What is the benefit of OTP?

With OTP, all our accounts like Google account, net banking account, bank account etc. are all safe.

The speciality of OTP is that the code generated by this can be used only once and it remains valid only for some time, if we have not used the code within that time, then that code will not be used by any of our users. That is, every time we do online transactions, these codes are generated differently, so that our account remains completely secure.

Even if the username and password of any of your accounts are known to any other person, even then he will not be able to use your account because for that OTP will be required which will come only on your registered mobile number or on your email id. He will not be able to take the wrong advantage of your account.

Where is OTP used?

OTP is most commonly used to do online transactions in net banking, apart from this Google has also started using OTP security to make users’ accounts even more secure.

Any other user can not log in after entering your account details from his device if OTP is activated. because Google will ask for an OTP password to verify there, which will only get the OTP code on your mobile number through SMS.

This code is required to access your e-commerce site’s account like Amazon, Flipkart Snapdeal, eBay, etc. Online private companies that offer digital wallet services such as Paytm, MobiKwik and Freecharge. These companies also use OTP to protect their customers’ accounts.

Advantages of OTP

Let us now know what are the benefits of OTP.

To increase security or security

This is a type of security code. This is because it is a protective shield for the user. At the same time, even after the theft of these passwords, the user’s account remains safe. Because without entering the OTP, no other person can access it.

Authentication of User

Through OTP, the authentic user is authenticated. This is because OPT goes only on the registered mobile number of the user. If the right user is doing any activity through his account. For such as changing passwords, updating mobile numbers, etc., for their authentication, the system sends OTP to the user according to the method chosen by him. Actions are considered valid only after entering them.

Avoidance of Spamming

When we do online money transactions, the bank sends OTP to get permission from the account holder. So that the identity of the real account holder can be proved. This keeps us from falling prey to fraud. And it is used the most in financial transactions only.

Enable Double Security

We can enable OTP Double Security on our account or social media account (Facebook, WhatsApp Twitter Google etc.) through OTP. And this can make them more secure. So that no other user can access it.


It is completely free. The user does not have to pay any extra fee for this.

Process is Very Fast

With OTP, the identity of the original user is proved in seconds. The user does not have to attend the magistrate with the documents to get his identity done.

TOTP vs. Static Password

This authentication method is convenient but not secure. Online identity theft is on the rise worldwide, using keyboard logging, phishing and man-in-the-middle attacks.

Strong authentication systems overcome the limitations of static passwords. They include an additional security credential such as a temporary password (OTP) to protect end-users digital identities and network access.

This provides an additional level of protection and makes it harder to access unauthorised information, networks, or accounts online.

Time-based One-Time Password (TOTP) changes after a set period, such as 60 seconds, for example.

India’s mAadhaar mobile app allows you to generate an OTP instantly, instead of waiting for the one-time password to arrive. The app’s algorithm generates either a TOTP or dynamic OTP. The 8-digit code is valid for 30 seconds.

It sounds easy, and it is.

This is an example of OTP for online payments

How are one-time passwords created?

There are many ways to generate one-time passwords. Each method has its own advantages and disadvantages.

Security tokens

A more convenient way for users is to use an OTP token, a hardware device capable of generating one-time passwords.

There are many more.

These devices may be PIN-protected for added security.

An authentication server validates the logon request by combining the user’s one-time password and other identity credentials (typically username and password).

This is a good solution for enterprise applications but it can be costly for consumer applications.

The token must use the same method as the server. Therefore, each server logon requires a separate token. Users will need a unique token for each network or Web site they visit.

OTP and smart cards

Advanced hardware tokens can use microprocessor-based smartcards to calculate one-time passwords.

Smart cards have several advantages for strong authentication, including data storage capacity, processing power, portability, and ease of use.

They are more secure than other OTP tokens in that they create a unique, non-reusable password for each authentication event and store personal data.

Display payment cards can even integrate an OTP generator for 2-factor authentication.

Strong authentication with OTP using Public Key Infrastructure

Additional strong authentication capabilities can be added to smart cards, such as Public Key Infrastructure certificates or PKI .

The smart card device is able to provide core PKI services such as encryption and digital signature.

Thales smart cards provide OTP strong authentication in Java(tm), and Microsoft.NET environments.

End-users can choose from multiple connectivity options and form factors to ensure they have the right device for their network access needs.

All Thales OTP devices are compatible with the same Strong Authentication Server, and all have the same set of administrative tools.

Single-factor authentication (SFA)

Single-factor authentication, the traditional security method, requires a username and password to grant access.

One password compromise was all that was needed to shut down the largest US oil pipeline.

Colonial Pipeline was shut down by Darkside, a ransomware group. It happened in May 2021. The attack caused gas shortages and panic buying. It also brought to light the vulnerability of ransomware to disable critical infrastructure and weak password protection.

Bloomberg (4 June 2021() reported that the company’s system had been breached by a single leak password to an older VPN account, which was used to remotely access its servers. The account did not use multifactor authentication. Colonial’s network was hacked using a compromised username and password. Bloomberg reports that the hacker may have used the same password to access multiple accounts, but investigators would not be able to determine how.

Two-factor authentication (2FA)

Stronger authentication can also be implemented with two-factor authentication (2FA) or multiple-factor authentication. These cases require that the user provide two or more authentication factors.

Below is another example of 2 factor-authentication in banking.

You will need to bring your card (something that you have) and a pin code (something that you know).

In Singapore, Singpass uses Two-Factor Authentication (2FA) and end-to-end encryption of passwords to access the country’s eGovernment services securely.

Grid cards

One-time passwords can be provided by simple methods like grid cards and transaction number lists.

These methods are low-cost, but they can be slow, hard to maintain, shareable, and easy to duplicate. Users must also keep track of their passwords.


What is the OTP code?

OTP full form is One Time Password. OTP-code is generated for a single transaction in the defined time frame. This code is sent to the user’s mobile and can be entered only once in the defined time frame. If the user enters more than one time then the code won’t work. So, it is very secure and efficient. This code is being used by all secure channels such as Banking, E-com, Logistics, Legal, etc. No one can hack personal data if this code is implemented in the system.

How do OTP tokens Works?

OTP tokens are generated by the very secure encrypted algorithm. There are many third-party vendors that provide token generation software. There are two types of tokens.
1) Synchronous tokens: This is synchronized with the RSA key if someone entering into the system needs this key. This keeps on changing after a defined time frame. Generally, the time frame is 1 minute. If you enter the wrong token 3 times, it will get locked. Most of the IT companies are using this with VPN.
2) Transactional tokens: These tokens are used by banks, e-com, logistic companies. This is an instant messaging and a secure code generation system. The code is generated and used only once and expires.

What is 4 digit OTP Number?

One-time Passwords (OTP) are passwords that can only be used for one login session or transaction on a computer or digital device. OTP’s can be used for almost all services, such as online banking and transactions. These OTP’s are usually a combination of four to six numeric digits or a 6-digit alphabetic. The random () function can be used for random OTP that is predefined in the random library. It depends on the software that generates the code.

How do I get OTP on my phone?

When we make any online transaction, then we enter address details and payment details. Once we press the next step. a one-time code will be sent to registered mobile now. This is how code is sent to mobile.

What is OTP in a text message?

The SMS OTP authentication method uses to send a one-time password (OTP). The OTP is sent to the user and the user enters it on the device that the authentication is taking place. The OTP must only be used within a specified time period. OTP format: The number and type of digits contained in the OTP.

Who invented OTP?

Gilbert S. Vernam and Joseph O. Mauborgne.

What is OTP full form?

OTP full form is One Time Password

What We Learn Today

I hope you like this article What is One Time Password or OTP? Must have liked it. It has always been my endeavour to provide complete information about OTP in Hindi to the readers so that they can be accessed from any other sites there is no need to search in the context of that article on the internet.

This will also save their time and they will also get all the information in one place. If you have any doubts about this article or you want that there should be some improvement in it, then you can write low comments for this.

Raushan Kumar
A Cook, Software analyst & Blogger.


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