Definition:
Tokenization is the process of replacing sensitive data, such as credit card numbers or personal information, with a unique identifier or token. The token has no exploitable value and can only be mapped back to the original data through a secure system.
Use Cases:
- Used in payment systems to protect credit card information during transactions.
- Employed in data privacy solutions to reduce the risk of data exposure in case of a breach.
Related Terms:
Questions and Answers:
- How does tokenization improve security?
Tokenization protects sensitive data by replacing it with tokens, ensuring that even if a breach occurs, the exposed tokens cannot be used to access the original data.
- What is the difference between tokenization and encryption?
Tokenization replaces sensitive data with non-sensitive tokens, while encryption encodes data into ciphertext. Tokenized data cannot be reversed without access to the token vault.
- Where is tokenization commonly used?
Tokenization is widely used in payment processing systems, healthcare, and other industries handling sensitive personal or financial data.