What is Tokenization?
Tokenization is the process of converting sensitive data into anonymous, nonsensitive “tokens” that can be accessed by a database or internal system without putting it at risk of exposure. Although the tokens have unrelated values, they still preserve some characteristics of the original data, most often in length or format, allowing for uninterrupted business operations. After that, the original sensitive data is securely stored somewhere other than the company’s internal systems.
Tokenized data is irreversible and unbreakable in contrast to encrypted data. This point is crucial because there is no mathematical connection between a token and its original number, meaning that tokens cannot be transformed back into their original forms without the help of additional, separately stored information. As a result, the original sensitive data will not be compromised in a tokenized environment breach.
Where Did Tokenization Originate?
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