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Probably something like OATH (as used by google authenticator and similar software) or a yubikey. With yubikey you can even get your own HSM for the authentication server.

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Thanks. I had heard about yubikey. will def check it out.

Might be worth to note that the YubiKey authors did mess up quite badly at one point in time:

http://www.lsv.ens-cachan.fr/Publis/PAPERS/PDF/KS-stm12.pdf

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