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

What are the advantages and disadvantages of token-based authentication? ›

Pros of Using Tokens
  • 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. ...
  • Flexibility and Performance. ...
  • Tokens Offer Robust Security. ...
  • Compromised Secret Key. ...
  • Data Overhead. ...
  • Shorter Lifespan.

What is the limitation of token authentication? ›

Disadvantages of 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 are the advantages and disadvantages of authentication? ›

User authentication provides strong security and granular control over who can access sensitive data or perform specific actions. However, it can be time-consuming for users and requires additional infrastructure and management.

Why use token-based authentication? ›

Tokens add a barrier to prevent hackers: A 2FA barrier to prevent hackers from accessing user data and corporate resources. Using passwords alone makes it easier for hackers to intercept user accounts, but with tokens, users can verify their identity through physical tokens and smartphone applications.

What are the pros and cons of tokenization vs encryption? ›

While tokenization is more suitable for smaller pieces of data, you can safeguard full documents by encrypting the stored information. The encryption process uses algorithms to secure data, which makes it faster.

What is better than token authentication? ›

If your application handles sensitive data or requires rapid revocation, session-based authentication may be the better choice. If your application needs fast, efficient authorization or requires more interaction between the client and server, token-based authentication may be more suitable.

What are the limitations of tokenization? ›

6. Token Management Complexity: Managing the lifecycle of tokens, including encryption keys and mapping tables, can be intricate. Secure tokenization relies on efficient key management. Organizations must ensure proper generation, storage, and rotation of encryption keys to prevent token-related vulnerabilities.

What are the disadvantages of security tokens? ›

Advantages And Disadvantages
AdvantagesDisadvantages
It provides ownership in the blockchain ledger.It has a risk of theft and security breaches.
It represents assets with intrinsic value.It has no guarantee of security despite safeguards.
4 more rows
Jan 5, 2024

What are the risks of token approval? ›

The Risks of Approving Tokens

One of the primary ways that bad actors exploit token approvals is through the use of malicious smart contract functions. If an unsuspecting user selects the 'SetApprovalForAll' function on a malicious contract or dApp, scammers can drain tokens from the user's wallet.

Which authentication method is better? ›

Although you can choose from several authentication options, some authentication methods such as face or touch unlock, security keys, and PIV/CAC cards are more secure against phishing and theft.

What are the weakness of authentication? ›

11 Most Common Authentication Vulnerabilities
  • Flawed Brute-Force Protection. ...
  • Weak Login Credentials. ...
  • Username Enumeration. ...
  • HTTP Basic Authentication. ...
  • Poor Session Management. ...
  • Staying Logged In. ...
  • SQL Injection. ...
  • Unsecure Password Change and Recovery.

What are the disadvantages of key based authentication? ›

3 Drawbacks of keys

Second, keys can pose a security risk if they are lost, stolen, or compromised. If someone gets access to your private key, they can impersonate you and access your servers. Third, keys can create compatibility issues with some systems or applications that do not support key-based authentication.

What are the disadvantages of token passing? ›

The disadvantage is that even when demand is light, a station wishing to transmit must wait for the token, increasing latency. Some types of token passing schemes do not need to explicitly send a token between systems because the process of "passing the token" is implicit.

What is an advantage of using a token system? ›

Benefits of Token Economy Systems

Teachers can use token systems to reward students for completing assignments, participating in class, or displaying good behavior. Parents might use tokens to encourage chores, homework completion, or cooperation among siblings.

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