Tokenization

Tokenization is the process of converting sensitive data into unique identification symbols, or tokens, that retain essential information about the data but protect its confidentiality. In this process, the original data is replaced by tokens, which can be used for further processing without exposing the actual sensitive information. Tokenization is commonly used in industries such as finance and healthcare to safeguard personal data like credit card numbers, social security numbers, and other confidential information during transactions and data transfers. The main advantage of tokenization is that the actual sensitive data is stored securely in a separate location, minimizing the risk of data breaches and ensuring compliance with data protection regulations.