Hi, John
 
hardware approach for storing any authentication info would be a bad choice.
Imagine a user trying to connect 10 or more dongles, iButtons or whatever
external hardware promoted by different vendors to her or his machine just
to make the software purchased from different vendors work. What dongle
belongs to what soft ? Where to keep them all? Oh, I just lost my
dongles/iButtons box somewhere !... Where to connect all that stuff if there
are no more free ports available ? I guess all they consume power too... No
way!
 
I would suggest to give up any hardware idea for user authentication and
rely on users database on a remote server instead !
 
Best wishes
Viktoras
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