When we started WiKID, we knew we had to be as secure as or more secure than the leading players at the time (RSA, Vasco, mostly, way back then). We decided that using asymmetric keys generated on users' devices was the best way to overcome objections to software-based tokens. After all, R,S & A had developed public key encryption to overcome the weaknesses of shared secret encryption.
Fast-forward and the dominant form of consumer-oriented two-factor authentication is "two-step" authentication using a shared secret-based protocol (even after hackers successfully stole the shared secretsof a major 2FA vendor) or worse, using SMS. Of course, we know the saying that marketing trumps technology. This seemed like a typical case of that. No one much cared about the increased security offered by asymmetric encryption.
But, security is a slightly different beast because: 1. Attackers are always getting better. 2. Regulationsand compliance can force a market to change despite marketing. The #PCI-DSS Council may be in the process of doing that with their most recent guidance on multi-factor authentication, stating that multi-step authentication leaks account information and should not be used. NIST has said that using SMS as an authentication mechanism is deprecated.
In a way, this will be easier for many systems administrators. Most VPNs and remote access services by default support OTP-based 2FA via RADIUS (which also allows authorization in AD/LDAP another recommended practice) and they do not support a multi-step authentication process. There is no way, for example, to do two-step authentication on a Cisco ASA. But, two-factor authentication is easy and can be added to ASA Admin accounts as well, a great idea and soon to be required for PCI's non-console admin access requirements.
from It always comes to this: why making the right security designs up front matters.