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How does the TOTP algorithm generate security codes?

  1. Using random number generation

  2. Using a secret key that changes with the time of day

  3. Through user-defined algorithms

  4. By constant recalculations of passwords

The correct answer is: Using a secret key that changes with the time of day

The TOTP (Time-based One-Time Password) algorithm generates security codes by utilizing a secret key combined with the current time, formatted in a specific way. This method ensures that the codes are unique and time-sensitive. The core idea is that TOTP takes a shared secret key, which is known only to the server and the user's client, and combines it with the current timestamp (typically in 30-second intervals). This combination of the secret key and the time factor is processed through an HMAC (Hash-based Message Authentication Code) function, which produces a hash that is then truncated to create the final one-time password. Because the time component changes regularly, the generated code is time-limited, so even if someone intercepts a code, they cannot use it after the time period has elapsed. This mechanism enhances security by ensuring that each code is only valid for a brief window, and since the secret key does not change dynamically (it remains constant), it's the time factor that provides the variation needed for unique codes at each interval.