Yubico Forum

I think most yubis do smartcard and what's even better is that it doesnt take a config slot.

so why use the challenge response for the login software instead of trying to use the smartcard?

You can't use a smart card to log in to Windows locally - this would require a domain environment, Certification Authority, etc. You can accomplish that through PIV.

For local Windows accounts / standalone Windows computers you would need third-party software like EIDAuthenticate - https://www.mysmartlogon.com/products/e ... icate.html

yeah but for challenge response you ALSO need a 3rd party (in this case from yubico) software, so that changes nothing.

you could also have made it instead of using challenge response to use the smartcard.