Yahoo is constantly updating and evolving its systems, and during this weeks South By Southwest Show, it caught a lot of peoples attentions. Its latest and greatest thing, is a system of on-demand passwords, and this new system will help users make Yahoo more secure and easier to secure for users as well.

The system of on-demand passwords circles around the thoughts of two-factor authentication to secure passwords, but is somewhat different. I lets someone log into a Yahoo account with a short password, all that comes via a text message on their Phone sent from Yahoo’s servers.

Yahoo Shows Off New On-Demand Passwords At SXSW Festival

How It All Works

With this new on-demand password plan from Yahoo, a users will login to Yahoo using their current passwords. Users can then go into the security settings and turn on the on-demand passwords and register their phone. Next, when they login, the button for send my password comes up, and Yahoo sends a four character password to the phone.

During the speech in Austin, Yahoo’s Dylan Casey, their VP of Product Management, stated that they goal of this system is to eliminate passwords. It’s a lot like two-factor authentication he explains, but removes the first factor where the user inputs a password, only to be followed by a second password later sent via the site or app.

Yahoo Shows Off New Service To Secure Yahoo Logins and Services

Will On-Demand Passwords Work?

Many are sceptic that this will work, as two-factor authentication is a common practice at many sites now. Google, Microsoft, and Facebook use it, so why would Yahoo diverge away from it? Yahoo has a ton of users, and is looking to make it safer, so this new on-demand password may be the safest way to go for them.

The new on-demand passwords are available now to try, and do work. I’ve set up my own Yahoo email to login and try it out, and it works relatively quickly. You do have to have your phone with you when you login, so that could be a downer. It seems to work, but I’m not sure it will work for the longhaul.

Yahoo’s on-demand passwords are new and worth trying out. If you want security, Yahoo is giving you the next level of it today.