Pros and Cons of Using Token-based Authentication (2024)

You may have come across the term “Token” multiple times. However, only a few people know its use and benefits.

A token plays a crucial role in enhancing the overall security mechanism of an organization that helps to deliver flawless and secure authentication and authorization on their website or application.

This post will help you better understand what a token is, what are its pros and cons and will help you decide whether you need to invoke the potential of tokens for your business or not.

What is a Token?

A token can be defined as a digitally encoded signature used to authenticate and authorize a user to access specific resources on a network.

A token is always generated in the form of an OTP (One-Time Password), which depicts that it could only be used once and is generated randomly for every transaction.

The token-based authentication allows users to verify their unique identity, and in return, they receive a unique token that provides access to certain resources for a particular time frame.

Apart from this, users can easily access the website or network for which the token is issued, and need not enter the credentials again and again until the token expires.

Tokens are widely used for regular online transactions for enhancing overall security and accuracy.

How a Token Works?

Whenever you perform a transaction online, you need to enter the credentials. Once you provide the credentials, the system then sends an OTP to your mobile device through a text message or an email.

A token generator generates these random OTPs, and the user is authenticated once the same is presented to the website or application.

A random string to the user is sent, which is stored in persistent storage like web storage, and with every request by the user, the string is sent to authenticate the user multiple times during the token lifespan automatically.

The lifespan of a token is small. Also, a DB table containing all the session tokens is mapped to a user-id is involved and contains other details, including expiry, device-type, etc.

What is JWT (JSON Web Token)?

JWT (JSON Web Token) is used to provide a standard way for two parties to communicate securely. JWT is commonly used for managing authorization.

There exists an open industry standard called RFC-7519, which defines how JWT should be structured and how to use it for exchanging information (called “claims”) in the form of JSON objects. This information can be verified and trusted as its digitally signed.

JWT (JSON Web Token) is a popular method of SSO, which is widely used by B2C applications, and through this system, you can allow your consumers to log in to an application that supports JWT.

LoginRadius acts as an Identity Provider; it means LoginRadius can authorize a third-party application that will act as a Service Provider.

Pros of Using Tokens

1. Token-based Authentication is more Scalable and Efficient

As we know that tokens are required to be stored on the user’s end, they offer a scalable solution.

Moreover, the server just needs to create and verify the tokens along with the information, which means that maintaining more users on a website or application at once is possible without any hassle.

2. Flexibility and Performance

Flexibility and enhanced overall performance are other important aspects when it comes to token-based authentication as they can be used across multiple servers and they can offer authentication for diverse websites and applications at once.

This helps in encouraging more collaboration opportunities between enterprises and platforms for a flawless experience.

3. Tokens Offer Robust Security

Since tokens like JWT are stateless, only a secret key can validate it when received at a server-side application, which was used to create it.

Hence they’re considered the best and the most secure way of offering authentication.

Tokens act as a storage for the user’s credentials and when the token travels between the server, or the web browser, the stored credentials are never compromised.

Cons of Using Tokens

1. Compromised Secret Key

One of the major cons of relying on tokens is that it relies on just one key. Yes, JWT uses only one key, which if handled poorly by a developer/administrator, would lead to severe consequences that can compromise sensitive information.

It’s essential for businesses to seek professional help coupled with robust security mechanisms while planning to add JWT to their authentication mechanism to ensure the highest level of security.

2. Data Overhead

The overall size of a JWT is quite more than that of a normal session token, which makes it longer whenever more data is added to it.

So, if you’re adding more information in the token, it will impact the overall loading speed and thus hamper user experience.

This situation can be fixed if right development practices are followed and minimum but essential data is added to the JWT.

3. Shorter Lifespan

Short-lived JWT are harder for users to work with. These tokens require frequent reauthorization, which can be annoying at times, especially for the clients.

Adding refresh tokens and storing them appropriately is the only way to fix this scenario where long-lived refresh tokens can help users stay authorized for a more extended period of time.

Conclusion

Enterprises can leverage tokens depending on the nature of the requirement and their individual business needs.

Although JWT can be the right option in most scenarios if implemented correctly and securely by following the right security measures.

However, one should consider the above-mentioned aspects before relying on a token for authentication and authorization.

Pros and Cons of Using Token-based Authentication (2024)

FAQs

Pros and Cons of Using Token-based Authentication? ›

Introduces risk: If managed poorly or improperly configured, token-based authentication can lead to widespread data and application breaches. Much of the value in tokens is convenience because only one key is required for system or multi-system access.

What is the limitation of token authentication? ›

Introduces risk: If managed poorly or improperly configured, token-based authentication can lead to widespread data and application breaches. Much of the value in tokens is convenience because only one key is required for system or multi-system access.

Why do we use token-based authentication? ›

An authentication token allows internet users to access applications, services, websites, and application programming interfaces (APIs) without having to enter their login credentials each time they visit.

Why should we choose token-based authentication instead of cookie based? ›

The cookie authentication will take a longer time for a round of requests from the server to the client. Token authentication takes less time to decode the requests. It is quite complex to install in iOS or android due to the API structure.

Which is better session based or token-based authentication? ›

Key differences. Storage Location: Sessions are stored on the server, while tokens (JWTs) are stored on the client side. Stateful vs Stateless: Sessions are stateful, while tokens are stateless, allowing for better scalability in distributed systems.

What is an advantage of using a token system? ›

Research shows that token systems are effective at increasing desired behaviors (Matson & Boisjoli, 2009). What are the benefits of using a token system? Communicates to the child how much progress has been made. It is clear to the child how many more tokens they need to earn to receive a reward.

What are the limitations of tokenization? ›

Regulatory Compliance Considerations: While aiding in compliance with data protection regulations, tokenization is not a one-size-fits-all solution. Organizations must ensure that their tokenization approach aligns with specific regulatory requirements to avoid penalties or non-compliance issues.

Why use tokens instead of passwords? ›

Passwords: Token authentication offers superior security with encryption and digital signatures, while passwords can be exposed to attacks and are often reused. Token Authentication Reduces Repeated Logins: Users don't need to repeatedly enter login information, unlike passwords which can lead to "password fatigue."

What is the difference between API key and token-based authentication? ›

The main distinction between these two is: API keys identify the calling project — the application or site — making the call to an API. Authentication tokens identify a user — the person — that is using the app or site.

Which authentication method is recommended why? ›

After traditional password-based login, Multi-Factor Authentication is the most trusted authentication mechanism. For improved security, password-based traditional authentication and Multi-Factor Authentication methods are usually used simultaneously.

What is the business advantage of implementing authentication tokens? ›

Tokens Offer Robust Security

Since tokens like JWT are stateless, only a secret key can validate it when received at a server-side application, which was used to create it. Hence they're considered the best and the most secure way of offering authentication.

Is OAuth token based? ›

OAuth (Open Authorization) is an open standard authorization framework for token-based authorization on the internet.

What are the advantages of token-based authentication? ›

Token-based authentication simplifies the authentication process for known users. It allows users to access these resources without having to re-enter their login credentials each time they visit. To begin with, the user sends a request to the server, using a username and password.

Which is the strongest authentication mechanism? ›

Most Secure: Hardware Keys

External hardware keys, like Yubikeys, are among the strongest authentication factors available. Also called FIDO keys, they generate a cryptographically secure MFA authentication code at the push of a button.

What is the best authentication type? ›

1. Biometric Authentication Methods. Biometric authentication relies on the unique biological traits of a user in order to verify their identity. This makes biometrics one of the most secure authentication methods as of today.

What is a major limitation of using a token economy? ›

Advantages and Disadvantages of Token Economy
AdvantagesDisadvantages
Teaches delayed gratificationTokens don't have innate value
Is flexibleA token economy takes planning
Allows you to reinforce behaviors when the backup reinforcer isn't availableYour learner might lose interest or become frustrated
4 more rows

What are the limitations of basic authentication? ›

Basic authentication is easy to implement and compatible with most clients, but it has some drawbacks. The credentials are not encrypted, so they can be intercepted by malicious actors. The client has to store the credentials securely and send them repeatedly, which can affect the performance and security of the API.

What is a token limit? ›

Token limits refer to the maximum number of tokens, or "words", that an AI system will process for a given request. Tokens are the basic units that natural language processing systems like GPT break text down into.

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