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The open source OAuth algorithm is standardized; other algorithms are covered by US patents.Each password is observably unpredictable and independent of previous ones, wherefore an adversary would be unable to guess what the next password may be, even with knowledge of all previous passwords.The most common types of physical tokens are smart cards and USB tokens, which require a smart card reader and a USB port respectively.
However, in order to use a connected token, the appropriate input device must be installed.
Still other tokens plug into the computer, and may require a PIN.
Depending on the type of the token, the computer OS will then either read the key from the token and perform a cryptographic operation on it, or ask the token's firmware to perform this operation A related application is the hardware dongle required by some computer programs to prove ownership of the software.
These tokens transfer a key sequence to the local client or to a nearby access point.
Alternatively, another form of token that has been widely available for many years is a mobile device which communicates using an out-of-band channel (like voice, SMS, or USSD).
However, some such systems, such as RSA's Secur ID, allow the user to resynchronize the server with the token, sometimes by entering several consecutive passcodes.