Lamport's one-time password algorithm (or, don't talk to complete strangers!)

There's a subtle beauty in simple things that present great value. To paraphrase Albert Einstein, a solution to a problem should be as simple as it can be, but no simpler. Applying a one-time password (OTP) scheme between distributed systems makes it more difficult for a would-be intruder to access and gain unauthorized control of restricted resources such as data, physical devices, or service end points. An OTP scheme is obviously a step up from completely open access, or access limited only by physical network barriers. But a solution based on an OTP challenge also has some advantages over static, infrequently changing passwords, because the window of opportunity to gain access to credentials is much smaller. There's a practical place for either type of authentication, or even both used in concert.

Refer : http://www.javaworld.com/javaworld/jw-03-2009/jw-03-lamport-otp.html