A Beginner Guide to Token-Based Authentication

Nblocks
October 10, 2023

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The long hours spent online and the functionality of the internet-based activities in the modern world makes cybersecurity a big deal. The security problem is somewhat countered by service providers requesting unique passwords on every individual platform (to prevent multi-platform breaches). 

However, in today’s digital world, this would amount to remembering tens or even hundreds of very distinct passwords.  A proliferation of password managers exist today to help individuals navigate the password problem. 

However, even those have an inherent security risk. The risk  of stacking all your eggs in a single basket, especially a basket made and provided by a stranger. The latest, less distasteful alternative to help with the multiple password conundrum is an authentication token.

What is Token-based Authentication?

A token-based authentication uses a defined web protocol to generate unique digital tokens and verify the identities of their users. 

Identity providers implement this form of authentication using machine-generated, encrypted codes to grant access for tokens after the initial sign-up phase

The issued authentication token is also stored in the database. The server validates the auth token with the one in the database and grants continuous access. 

Note that the token must be within the expiration time limit. Otherwise, you must log in using your credentials to get another token.

What is an Authentication Token?

An authentication token is a digital key that allows users to transmit data and access online services without the need for inputted details. Such a digital token would guarantee its owner access to a particular service, provided it remains valid. 

Similarly, website owners integrate these tokens into their user management software where data security and access is concerned. Users would therefore not need to re-enter details every time they wanted to access a website or application. 

Types of Authentication Tokens

There are several types of authentication tokens, each with unique characteristics and functions. Below are the few types used in user or system verification:

  • Refresh tokens 

A refresh token allows you to get a new access token to access a service after the expiration of the old authentication token. It does not grant users direct access to a server. Instead, it renews the expired access token, removing the need to log in again after a session expires. You can use refresh tokens alongside OAuth 2.0 in web and mobile applications, API applications, and SSO systems. 

  • Federated tokens 

A federated token allows users authenticated by an identity provider (IdP) to access multiple systems or services without needing to log in again. They are used in cloud-based services, SSO solutions, cross organization access. Popular applications are in Google and Facebook, which allow you to prove your identity to other services without logging in.

  • One-Time Password OTP Tokens 

A one-time password token is a numeric, alphabetical, or numero-alphabetical code. Such code is generated by secure hardware devices or software synchronously or asynchronously. 

A synchronous OTP token is a time-based token generated using a private key and current time. In contrast, an asynchronous OTP token is an event-based token generated using a group of protocols, such as the Challenge Response Authentication Mechanism (CRAM).

  • API tokens 

An Application Programming Interface token acts as a unique identifier of an application that wants to communicate with another program or service. 

To access a service, it generates and stores an API token for the application. The application then presents the API token, which the service authenticates, thereby providing user access for a period. 

  • Hardware tokens

A hardware token is a physical device you can connect to a computer, which authorizes user access to a service. There are three types: connected, disconnected, and contactless, each with unique characteristics and functions. 

  • Connected hardware tokens require a direct connection to the computer via USB to gain access to the service. Examples include USB hard drives, keys, discs, and smart cards. 
  • Contactless hardware tokens communicate with a nearby computer or server wirelessly. Examples are Microsoft’s ring device for Windows-enabled computers and RFID (Radio-Frequency Identification) cards. 
  • Disconnected hardware tokens are mobile devices that use authentication software to issue a one-time code, which, on entering manually, allows access to a service. 

  • JSON Web Token (JWT)

JSON Web Token (JWT)  allows for transmission of user credentials between two parties using an open industry standard known as RFC-7519. The shared data contains everything about the entity, and the receiver does not need to call the server for validation. JWT can be sent as URLs, HTTP headers, etc. 

Integrating token-based authentication protocol into your applications will enable a secure environment and improved user experience. At Nblocks, we can revolutionize your journey with our SaaS development platform. 

We are an all-in-one solution providing secure and seamless application development access. Sign up and take applications building to a level that guarantees high-level security and user experience.

How does Token-based Authentication Work 

Token-based authentication process depends on the type of auth tokens. Nevertheless, the protocol follows a 4-step process highlighted below:  

  • Step 1: Request

The user logs in to the service to request access using username/password, biometrics, or other methods. 

  • Step 2: Verification

The server confirms the user credentials using authentication software.  Additionally, the server uses authorization software to determine the level of permission the user can get.  

  • Step 3: Token submission and granting

After verification, the server generates a secure and signed authentication token for the period in the background. In the case of hardware tokens, you must physically provide the token following the necessary procedure.

  • Step 4: Storage

The authentication token is held physically in the user’s browser or mobile phone, depending on the device and type of token. While still within the time limit, users can access the service without recurring credential use.

Benefits of Authentication Tokens

Using an authentication token has several advantages for startups and large corporations. Below are a few reasons to consider adding token-based authentication to your security protocol. 

  • Improved security

One of the most important reasons for the rise in token-based authentication is its additional security layer. For example, JWT are stateless, which makes them a secure option. Plus, auth tokens have an expiration date, which makes them more secure. 

  • Highly scalable

Servers that easily generate and verify new tokens. So it is easier to cater to increased user sessions. Moreover, software tokens are also more scalable because there is no need to provide users with physical tokens. 

  • High flexibility 

Software tokens’ functionality on multiple servers and cross-platform compatibility makes them a more flexible option for developers. Integrating it into web-based, mobile, etc., services and microservices are possible. Additionally, those that implement SSO systems are more convenient.

 

Disadvantages of Authentication Tokens

Authentication tokens also have a few disadvantages which might affect your choice. Below are a few disadvantages of the security protocol. 

  • Compromised Secret Key

A major disadvantage of authentication tokens is that they use one key, and improper handling can lead to security issues. Therefore, businesses must seek experts to handle the authorization and user management process to ensure a high-security level.

  • Shorter Lifespan

Since an authentication token has a time limit, systems where the users remain logged in for a long time will require revalidation. Having to revalidate multiple times may annoy users. However, a good solution is to use refresh tokens. 

  • Data Overhead

Adding more data to a token can increase the time to establish a user session. This is critical in JWT due to its large size, as adding more data will have an impact on the page load time. Common solutions include data compression and implementing a caching mechanism. 

Authentication Token Best Practices

Adding a token-based authentication to your security protocol will enable a more secure environment. However, there are other practices you need to effectively ensure safety. Below are a few basic authentication token best practices to consider:

  • Keep it secret and safe 

Although this applies to all tokens, it is very critical with hardware tokens, because they use physical devices. The key should be kept secret and safe, only revealed, and used in secure situations. 

  • Secure communication between token and server

Ensure communication between the token and the server is secure using HTTPS connections. Otherwise, communications between the token and server can lead to a security breach.

  • Give tokens an expiration 

Authentication tokens are valid forever unless the expiration is explicitly set. Unlimited validity can lead to security risks, so you should only use tokens with expiration dates. 

In the case of long sessions, you can also include a refresh token to renew the expired access token and remove the need for users to log in after a session expires. 

  • Use the appropriate token

For an efficient authentication process, you should use the right authentication token. For example, JWTs are costly and prone to interception, making them unsuitable for session tokens. Furthermore, their large size can reduce page load speed. 

Is Token-based Authentication Secure? 

Yes, token-based authentication protocol is secure and should be a top choice for any organization that desires a highly fortified environment. The secured environment is due to authentication tokens' randomness, length, and complexity. Thus, there is protection from guessing or brute force attacks. 

Authentication tokens' limited lifespan and secure transmission contribute to the protocol's high security level. Plus, its access control rules use token validity and user permission to allow users access to a service. 

Nevertheless, you should not stack all your eggs in a single basket by relying on only token-based authentication protocol. Instead, you should diversify your strategy by including other authentication protocols. 

In diversifying your MFA or 2FA strategy, Nblocks can be your trusted partner. We support token-based authentication and its integration with other protocols to create a working 2FA and MFA strategy. Sign up to create an application that guarantees minimal user experience and defense against cyber-attacks.

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