Both Hardware Tokens and Software Tokens provide "something you have" factor authentication. Common hardware tokens are smartcards, USB sticks or one-time-use password generators. Software tokens are generally apps that generate a temporary password. Software tokens are considered a cheaper alternative to hardware tokens, as issuing a hardware token to a large number of users has a high cost. Arguably hardware tokens are more secure, but are less practical and more costly.
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What are some examples of hardware tokens?
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How do software tokens work?
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