Tokenization

Simple Definition for Beginners:

Tokenization is a process of substituting sensitive data with non-sensitive tokens to protect it from unauthorized access.

Common Use Example:

When making a payment online, your credit card number is tokenized, replacing it with a unique token that can be used for transactions without revealing the actual card details.

Technical Definition for Professionals:

Tokenization is a security technique that replaces sensitive data, such as credit card numbers or personal identifiers, with non-sensitive tokens. Key aspects of tokenization include:

• Data Substitution: Replacing sensitive data elements with unique tokens that have no intrinsic value.
• Token Mapping: Maintaining a mapping table that links tokens to their original data for reversibility.
• Data Security: Protecting sensitive data at rest and in transit by using tokens that are meaningless outside the system.
• Token Format: Tokens can be numeric or alphanumeric, generated using encryption or randomization techniques.
• Compliance: Tokenization is often used to comply with data protection regulations like PCI DSS for payment data security.