Tokenization

What is tokenization?

Tokenization is a security technique that replaces sensitive data—such as credit card numbers, credentials, or personal information—with alternative values known as tokens. These tokens have no value outside the system that generates them, protecting the original data from theft or data breaches.

What benefits does it bring to businesses?

It helps reduce the risk of data exposure, simplifies compliance with regulations such as GDPR or PCI DSS, and strengthens trust with customers and partners. By separating tokens from the original data, organizations also improve resilience against cyberattacks and data leaks.

Where is it used in practice?

Tokenization is widely used in digital payments, banking, e-commerce, healthcare, and any sector that needs to protect sensitive information. It also plays a role in blockchain projects and the digital economy by enabling secure and traceable representation of physical or digital assets.