How do hardware tokens work in mobile multi-factor authentication?

Hardware tokens are small physical devices that are used to provide an additional layer of authentication for accessing sensitive information or systems. These tokens generate a unique code that is usually time-sensitive or based on a specific algorithm. By requiring users to have both the hardware token and their password, it significantly increases security by making it harder for unauthorized users to access the system even if they have the password. This extra layer of security reduces the risks associated with password-only access, such as password theft or brute force attacks.