How Data Tokenization Works

Data tokenization involves the substitution of sensitive information with unique tokens, typically generated through an algorithm and stored in a secure tokenization system. When sensitive data, such as credit card numbers or personal identifiers, is processed or stored, it is replaced with these tokens.

Importantly, the tokenization process is irreversible, meaning it cannot be reversed to reveal the original data without access to the tokenization system. The tokenized data retains no inherent value on its own, providing a robust layer of security. The actual sensitive information is stored in a secure vault or database, isolated from systems that use the tokens for day-to-day operations.