It is now an industry-wide accepted and standard to enable a 2-factor authentication for all of your online accounts. This provides a better security than just by a single password. A hardware authentication company Yubico aims to change that with its physical Yubikey tokens that support password-less logins. Yubikey tokens are based on FIDO2, an open source security standard that facilitates secure authentications. As this standard gets more accepted in the industry, all we will need to do to log in is to plug in Yubikey and tap on it.
Source- Android Central
FIDO tokens rely on authenticating with something physical like the YubiKey instead of relying on some static piece of data. This physical device does all kinds of cryptographic validation on its known. Microsoft and YubiKey 5 are now working together to completely erase the dependency which is now existing on password-based logins and avoid the shortcomings that come with it.
Like passwords, physical tokens like Yubikey can also be stolen, or misused by people nearby. Series 5 YubiKeys offers the added functionality of requiring a personal PIN as part of password-less login.
Source- Wall Street Journal