This paper explores the Time-Based One-Time Password (TOTP) authentication mechanism enhanced with lightweight cryptographic algorithms, presenting it as an advanced solution to the limitations of traditional OTP systems. There are a lot of applications and systems where this mechanism is applied. For example, bank applications, e-commerce websites, access control system, healthcare system, etc. TOTP generates dynamic, time-sensitive passwords using the current time and a secret key processed through a cryptographic hash function, significantly improving security by reducing vulnerabilities to code reused and interception. The adoption of lightweight algorithms ensures that TOTP can be efficiently implemented on resource-constrained devices, such as those on the Internet of Things (IoT) ecosystem. Despite its benefits, TOTP faces challenges including synchronization issues between client devices and servers, and a trade-off between computational efficiency and security strength. This paper discusses the implications of these challenges and evaluates how TOTP, with appropriate design considerations, can provide a robust, secure, and efficient authentication method suitable for various applications, from digital banking to IoT environments.