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Using Yubikey with constant keys

Yubikey is the first one-time password generator I saw that can also emit a static password. When you press the button, a constant pre-defined string is entered, just as if it was typed on the keyboard. Is it more secure than typing the password on the keyboard? Not at all (unless shoulder-surfing is an issue.) So how does it differ from entering a long key yourself? It does not. And still, local encryption is a valid use-case just for such a function.

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The case for supporting one-time passwords in conjunction with regular ones

A few days ago I got a Yubikey. While exploring use-cases for it, it occurred to me that there is a strong case for a mode of operation which is seldom (never?) used by IT departments: using the token while also supporting static passwords for the same services. It is not suitable for everyone, but it is suitable for the security-aware users. I will now introduce Yubikey in a few words, and then explain the purpose of adding support for one-time password to services that already support static passwords, without eliminating the latter.

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