Data tokenization is a security technique that replaces sensitive information, such as credit card numbers or personal identifiers, with unique tokens. These tokens hold no exploitable value outside their original system, protecting data from breaches and unauthorized access. Tokenization is widely used in payment processing, healthcare, and compliance with regulations like GDPR and PCI DSS. Unlike encryption, tokenization doesn’t require decryption keys, making it less vulnerable to attacks. It also minimizes the scope of sensitive data exposure in IT systems. By safeguarding information while maintaining functionality, data tokenization ensures data security, reduces risk, and enables businesses to operate with confidence in the digital age.
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