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Tokenization vs. Encryption: Which is Better for Protecting Critical Data?


What is tokenization?
Tokenization is the process of substituting a token (or data that does not have any significant value) for actual information. Tokens are randomly pulled from a database called a token vault to replace the real data.
An example of this process sometimes occurs when an online business accepts payment from a customer. Suppose the transaction takes place using a third-party site like PayPal or Shopify. In that case, the third party site may disguise the credit card number with other characters (tokens) to protect the customer’s information. The business can only see the tokenized information and does not have access to the actual card number. ....

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