Security Keys utilize a secure challenge-and-response authentication system, which is based on Cryptographic techniques.
Explanation:
The protocol in which a question called "challenger" is given by one party and the answer which is called "response" is given by another party that needs an authentication, is called as challenge–response authentication. The Cryptographic techniques are used for this purpose of authentication systems.
These techniques are used for the prevention of man-in-middle attacks and subsequent replay attacks.The information that is sent as a challenge by one party must be transmitted through a password that is encrypted and the other party must send a response with the same encrypted value with any predetermined function. This makes the decryption of the information in challenge to be very difficult.