Tokenization

Tokenization is the process of converting sensitive data into a non-sensitive equivalent, referred to as a token, that can be used safely without exposing the original information. The token serves as a placeholder and retains no sensible value, thus minimizing the risk of data breaches and unauthorized access. Tokenization is commonly used in various industries, particularly in financial services for payment processing, where it replaces credit card details with a unique identifier. This way, even if the token is intercepted, it cannot be reverse-engineered to reveal the original sensitive data. Tokenization enhances security by limiting the scope of data exposure while allowing for the data’s use in operational processes.