Steemit Crypto Academy Contest / S12W4 - Tokenization.

Greetings to everyone

Hello everyone how are you doing, i am here in another week of engagement challenge, the topic is Steemit Crypto Academy Contest / S12W4 - Tokenization. I would like to explore my knowledge about the tokenization.

Source

What is data tokenization and how does it work? Give your own opinion.

Firat of all what is token, these are digital non-mineable units that present as registered entry in the blockchain. Token exists in various form and have different uses, or instance they may be used for encoding data and also in currencies. Generally token are issued in blockchain for example in BNB or Ethereum chain. Few renowned token are ERC-1155 and ERC-20 etc.

The process that can convert sensitive data into token that can be stored, transferred and able to processed without changed in the original data is called data tokenization such as health data or credit card information.

These token further secure data, privacy and compliance because they are unique and unchangeable and its verification takes place on the blockchain.

It can be elebrated with an example such as a credit card, it consist of it has number that can tokenized in the randomly strings digits and these are useful for verification of the payment there is no need to revealed the original card number.

Moreover, if we talk about social media accounts data tokenization is applied there and it may enables users to select to tokenization their presence online. It also helped them movements from one social media platforms to other while maintaining the secrecy of personal data.

Furthermore the data tokenization can be useful secure payment information in financial sector and also used in industrial units.

How Data Tokenization Works

The working principle of data Tokenization consist of replacement of the sensitive information to the non-sensitive equivalents, these replaced information is called token. It may be accomplished by the any of the following methods.

• A key is used for th theoretically reversible cryptographic function to complete.

• The function is not be reversible just like a hash function.

• The number is produces at randomly or index function.

Resultantly the token will show expose information hence, the sensitive form of data which a token shows is safely stored in centralized server and it is called token vault. Now, orginal information can be mapped into appropriate token.

For example during the process of processing of amount, the tokenization obviously needed replacement a credit or debit card account detail with token. Although token itself is not connected with person or account.

The 16 digint main account number of customers has replacement with random generated alphanumeric ID. The advantages of this process is the elimination of link in transaction and confidential material. Its eliminate the risk of security breaches and it becomes ideal transaction from credit card.

The data Tokenization maintain integrity of bank account and credit card and bank accountin a virtualized vault, enabling enterprises to transmitting data safely with
computer networks.

How important is data tokenization? Give your own opinion.

Data tokenization plays significant role which are as follows.

• It reduced the risks of breaches of data.
• Help in identifying theft
• Fraud risks are minimized
• Reducing the danger of cyberattacks
• Security of token by secure mapping system
• If still data is stolen original data remained stored and safe

From the above-mentioned functions data tokenization is very important.

Benefits and limitations of data tokenization.

Data safety

if I talk about and the benefit of the data tokenization basically we safe the very sensitive and delicate data within the tokens and these tokens are really important because these thokens prevent from the data being scam or any kind of particular fraud or let's say if unlucky these tokens can be leaked or someone can copy this token so still our data is being safe and it is not being stolen from any fraud or scamming.

simplifying the data

The most importantly if I talk about the simplicity of the data how the data is being a regulated so that it can as simplify the data within the token so it in simple word I can say that it can reduce any complications or complexity within the data.

Safety of data sharing

Important think which is about sharing is that the our very secure data are the data which is really very important for us it can't be directly share because the data is being stored in the tokens and tokens are being only share to the respected partners are the person who are dealing with and they can only see the sensitive data so that data tokenization is also being's secured for data sharing as well.

Data restore

The data storage restoration if once being its hacked or its stolen so the recovery of the data can on the be possible within the token which is made for it so sometime it may become complicated because once you forgot that open you can't restore or recover the data so you can loss both the original data as well as that tokenization data.

Limitations

Legal issues

Data Tokenizing is sometimes responsible for legal and ethical issues about who is owner and who is controlling the data and where are shared or stored.

Data accuracy

The data tokenization could affect the quality and accuracy, because some useful information distorted in the tokenization process.

For example, if a user's location is changed into a token, it negative effect how they can see appropriate content which are based on location.

Are Tokenization and encryption the same thing? Explain your answer, giving a practical example.

Hence the Tokenization and encryption are used for data protection. Although their working and purposes are little different.

The process of conversion of data into unreadable form and a secret key is utilized for decrepted. Hence its done with mathematical process which helpful for scrambling data and then converting it into unreadable so it can not access the to whom who don't have key.

For example the Encryption is utilized in several ways such as for securing communication, authentication, storage of data,
and also for digital signatures etc.

While Tokenization, is the appraoch conversion sensitive data with uniqure identifier of non-sensitive, unique identifiers which are referred as tokens.

Unlike encryption it doesn't need any secret key for protection of the data.

For example, if we see a credit card number may be changed with a token since it doesn't have any link with original number, hence the process transactions can still done easily.

Moreover, the Tokenization used during data security is concerned with regulatory standards are sensitive for example , during the processing of payment processing or personally identifiable information unit.

Steem and Tokenization, what are Smart Media Tokens? Give your own opinion.

It is a digital asset on the blockchain which may be rapidly launched by any person and helped to monetize online contents and produced incentive which may helpful for improvement of user behavior.

They seem like the ethereum token, still they are built up on the principles of proof-of-brain and moreover they have reward system in the form of tokens and build up specific foe digital content of businesses.

Its useful in a way that tokens are given by "upvote" and "like" and its totally rely on algorithms and with the integration of websites to aligned incentives with the app owner and community people for better growth.

Its all about my post, i would like to invite my dear friends @m-fdo, @suboohi and @uzma4882 to take part in the challenge.