What Is 2FA and How Does It Work?

How Does Two-Factor Authentication Work?

2FA authentication adds an extra layer of security to normal password entry by requiring proof of identity through a second factor – this can be a one-time code generated by an app or device, a physical token, or biometrics. Once the password is entered, the system requests an additional code or confirmation generated on a device owned by the user or through verification of unique biometrics.

What are the Factors of Authentication?

Two-factor authentication is built on combining two different categories of factors, significantly increasing security. Let’s take a closer look at the proposed categories:

1. Knowledge factor: This refers to what the user knows—passwords, PINs, secret questions, and answers. It is the first level of verification, based on knowledge of information available only to the user.
2. Possession Factor: This includes what the user owns —physical tokens, mobile devices, or smart cards. The user must have physical access to this device to receive a one-time code or confirmation.
3. Biometric Factor: This uses a user’s unique biometric data, such as fingerprints, facial recognition, or iris. This data is difficult to fake and is based on the physical characteristics of the owner.
4. Location Factor: Assesses the geographic location of the user or device. Verification can be based on IP address, GPS coordinates, or other signals confirming access from the expected location.
5. Time factor: This factor verifies access times, such as allowing transactions or logins during certain hours, which adds a layer of security. Time violations can result in additional checks or blocking.

When 2FA is enabled, when a user logs in, they first enter what they know (such as a password). The system then asks for confirmation with a second factor – a one-time code from a token or smartphone, or biometric data. Only after both factors are successfully verified is access granted.

The combination of these three categories provides multiple layers of protection. The attack will fail even if the password becomes known to a third party, without a physical device or the inability to reproduce biometric data. This approach makes the system virtually invulnerable to most attacks, requiring much more effort and resources from an attacker to compromise an account.

Two-Factor Authentication Examples

When most exchange users hear “two-step verification,” they first think of two-step verification. Google Authenticator is an application that implements time-based (TOTP) and counter-based (HOTP) one-time password protocols. Let’s explore the two factor authentication process.

• When you set up Google Authenticator on the service’s website or app, you are prompted to scan a QR code or enter the secret manually. This QR code contains a unique secret key that will be used to generate codes.

The secret key is stored on the service’s server and in the Google Authenticator app on your device. This ensures that the server and the app are synchronized to generate and verify one-time codes.

• The TOTP protocol used by Google Authenticator generates one-time codes based on the current time and secret key, dividing the time into intervals (usually 30 seconds). At each interval, the application calculates a hash sum using the HMAC-SHA1 algorithm, from which a 6-digit valid code is extracted only during that interval.
• The accuracy of TOTP depends on time synchronization between the user’s device and the server, since the codes are generated based on the current time. Most TOTP implementations include a mechanism to compensate for small discrepancies and ensure that codes are generated and validated correctly even with minor time differences.
• When attempting to log in, the user enters a one-time code generated by the Google Authenticator application, which is then sent to the server for validation. The server, using the same secret key and the current time, calculates the expected code and checks it against the entered one: if it matches, access is granted, confirming successful two-factor authentication. Authorization then takes place.

Benefits of Two-Factor Authentication

Some of the benefits of 2fa include the following points:

• Increased security: Adds a barrier beyond the password, reducing the risk of unauthorized access.
• Password theft protection: Access is impossible without the second factor, even if the password is compromised.
• Minimal cost: Easy to implement and does not require significant resources from the user.
• Flexible methods: The choice of SMS, apps, hardware tokens, and biometrics can be customized for different threat levels.
• User confidence: Users have more confidence in protecting their data and financial assets.

How to Enable Two Factor Authentication on WhiteBIT?

2FA will help protect you from account hacking and loss of assets. To enable it in the web version of our exchange, follow a few simple steps:

• Install Google Authenticator or other relevant app on your mobile device;
• Log in to your WhiteBIT account and go to Account Settings and Security;

• Add the WhiteBIT tab to the app and enter the authentication code in the “Please enter key” field, then 2FA is installed! Save the backup codes, if provided, to restore access in case you lose your phone.

2FA vs. MFA

Let’s look at the difference between 2FA and MFA:

Two-factor authentication uses exactly two factors from the three main categories (knowledge, possession, biometrics) to confirm identity. For example, logging in requires a password (knowledge) and confirming the login with a one-time code from a smartphone app (possession).

MFA or multifactor authentication extends the concept of 2FA by allowing more than two factors to be used. These can be any combination of knowledge, possession, biometrics, and additional parameters such as location or time. MFA is not limited to only two factors, but provides flexibility in the number and types of 2fa methods used, increasing the level of security.

Conclusion

To summarize what is two-factor authentication — is one of the easiest and most effective ways to improve account security. Integrating 2FA takes only a few minutes, but is guaranteed to make life much more difficult for attackers. In today’s world, where attacks are becoming increasingly sophisticated, utilizing additional authentication factors is an investment in protecting digital assets and personal information.