What Does it Mean to Tokenize?
Tokenization is the process of breaking down a larger piece of data into smaller, more manageable pieces. It can be used to break up text strings, numbers, or other types of data for easier storage and retrieval. Tokenization also helps with security by making it harder for malicious actors to access sensitive information stored in databases. For example, tokenizing credit card numbers makes them much less vulnerable to theft since they are broken up into multiple parts that must all be present before any transaction can take place.
In addition to its use in security applications, tokenization has become increasingly popular as a way to facilitate transactions between two parties without having either party reveal their full identity or financial details. This type of tokenized payment system allows users to make payments securely while still protecting their personal information from being exposed during the transaction process. Tokenized systems have been adopted by many companies such as Apple Pay and Google Wallet which allow customers to pay using tokens instead of providing their actual credit card number each time they make a purchase online or in-store.