Tokenization

 Credit Cards - Tokenization

Tokenization is used with an easy credit card reordering process. One such method is the vendor storing the credit card information (not in plaintext) for monthly or yearly subscriptions. 

This process can replace part or all of the original data. The token is located on a token server.

Tokenization is a security technique that replaces sensitive data with a non-sensitive substitute, called a token. Tokens are unique identifiers that link to the original data, but cannot be deciphered to access the original information.

Tokenization is used in many areas, including:

Payment processing

Tokenization protects credit card numbers and bank account numbers by replacing them with tokens. This removes the connection between the transaction and the sensitive data, making it safer to transmit data over wireless networks.

Speech recognition

Voice-activated assistants like Siri or Alexa use tokenization to process spoken words. When you ask a question or give a command, your spoken words are converted into text, which is then tokenized.

Commodities

Tokenization can be used to bring ownership of commodities like oil, gold, or agricultural products into onchain tokens. This makes the market for these assets more liquid and accessible.

Tokenization is also known as "masking" or "obfuscation".