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> Google's 2 step authentication is completely useless to some of us because they don't have actual per application passwords.

App-specific passwords are one-factor in any case (they are "something you know" just like any other password), and are an alternative to two-factor auth for certain places where Google's two-factor auth isn't supported for one reason or another. Google's 2-factor auth requires a device (usually, smartphone app) generated code alongside your regular Google password.



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