HMAC-based one-time password
HMAC-based one-time password (HOTP) is a one-time password (OTP) algorithm based upon an HMAC. When a client attempts to access a server, a challenge is sent by the destination server to the client. The client then computes a response which represents a one time password. This often forms part of multi-factor authentication protocols such as the Open Authentication initiative (OATH) challenge-response algorithm.
HOTP was published as an informational IETF RFC 4226 in December 2005, documenting the algorithm along with a Java implementation. Since then, the algorithm has been adopted by many companies worldwide (see below). The HOTP algorithm is a freely available open standard.