Your bank is implementing a token-based solution for authentication. What type of authentication will they be using?

The implementation of a token-based solution for authentication indicates the use of multifactor authentication. This is because token-based systems typically require users to provide a combination of two or more different factors to verify their identity.

In a multifactor authentication setup, one factor is generally something the user knows (like a password), and the second factor is something the user possesses (such as a hardware token, a mobile device app that generates a code, or a physical smart card). The use of a token adds an additional layer of security by ensuring that even if a password is compromised, access to the protected resource would still require the possession of the token.

This is distinctly different from single-factor authentication, which relies on just one method, such as a password alone. Knowledge-based authentication, which involves something the user knows, does not include a physical item like a token. Certificate-based authentication relies on digital certificates to authenticate users or devices, which doesn’t directly involve token-based methods. Therefore, the token-based solution aligns with the principles of multifactor authentication, making it the correct answer.