We received this question in e-mail:
Quote:
With firmware version 1.3.0 will you be supporting both the one time
password and the locally authenticated login.
I see a device where for sites that you control or support the Yubikey only
the OTP is used and for other sites a 32-character string is used.
Is it necessary for the authentication server to support the static password
as it can only work for sites that support Yubikey?
The answer is that with firmware 1.3.0 each particular yubikey can be programmed to work in
either static OTP mode, or in "normal" OTP mode. The yubikey doesn't know which site you visit, and in particular whether it supports real OTPs or not, so you can't use the same yubikey for both static OTPs and for normal OTPs. You can however use two different yubikeys, one that is static and works against all pre-yubikey-ified sites, and one dynamic that works against sites that call out to a server.
If an authentication server knows the AES key in your yubikey, it will be able to decrypt even static OTPs. However, the plaintext fields will be fixed (0xFF) so a normal server would reply REPLAYED_OTP after the first use. Servers could detect that the OTP is a static one and return a special error code, but we haven't seen a need for this yet.
I hope this answers the question.
/Simon