Network security is the prevailing and challenging factor in computer communications. Computer security and communication security are interrelated and essential features in the internetworking system. Network security is ascertained by many factors like authentication, authorization, digital signatures, cryptography, steganography etc. Among them authentication is playing an important role in networked communications, where the communicating partners are to be identified each other legitimately. Authentication process ensures the legitimacy of the communicating partners in networked communication. In an authentication process, the originator of the communication and the respondent transact some identification codes to each other, prior to start of the message transaction. Several methods have been proposed regarding the authentication process for computer communication and smart card based networks from time to time. We introduced a new scheme to enhance and ensure the remote authentication through secure and dynamic authentication using a smart card, which is relatively a different approach. This scheme discusses the authentication procedure for smart card based network systems. This article introduces a dynamic authentication scheme, which includes a number of factors, among them the password, password index, and date of modification are important factors, which decide the dynamicity in authentication. The static approach authentication schemes are vulnerable to different types of attacks in networked communication. This dynamic authentication scheme ensures the authentication, confidentiality, reliability, integrity and security in network communications. This article discusses the implementation of this scheme and to analyze the security and performance factors to ensure the dynamic mutual authentication and to enhance the security features in authentication for smart card based networks.