Steemit Crypto Academy Contest / S12W4 – Tokenization.
A method which is used for the protection of sensitive information with the replacement of a unique identifier is called data tokenization method. In this way or by this method data security becomes more while still allowing it to be used for different other purposes.
Data tokenization is another name for data security enhancement because private information like credit card numbers or personal identification numbers are stored and transmitted in their original forms so in this way security becomes more ensured. A token is generated instead which is just like a random string that represents original information or data.
If I talk about working of tokenization process then it involves several steps I am going to explain in different points below.
- Sensitive and personal information of people is first identified and cleared which includes their credit card numbers and their social security numbers and after then talkinization system generates unique token for each sensitive data and then the token becomes random string which has no correlation to original data and then that token and original information becomes more secured in a secure database.
If user feels are need to access his or her personal information for the purpose of transaction or anything else like verification then token is used instead and then token is sent to tokenization systems for retrieving corresponding real and authentic information of user from secure database.
Data tokenization have minimized risk of data breaches. If personal information of a person is not stored and transmitted yet in its original form and at that time a hacker comes for hacking or accessing tokenized data then he would not be able to decipher actual and authentic data so in this way this is a significant way to enhancing security of personal information or sensitive data.
- Organisations that comply with data protection are also helped by data tokenization.With the tokenization of private data , organizations also try to reduce scope of their compliance requirements because sensitive data is no longer in there systems.
Now one thing that I want to discuss with all of you is most important that data organisation is not one size fits all solution because there are certain types of data and applications about which this method becomes no more suitable so there is a need to carefully evaluate specific requirements by organisations and to considered different factors like scale ability and performance with existing systems before implementing any data tokenization.
In today's digital landscape we cannot neglect the importance of data tokenization. Sensitive information and organisations from get a breeches and identity theft this is a process that plays a safeguarding role. Data tokenization is a most significant security measure that should be implemented by all entities which handles sensitive informations.
Data tokenization importance can never be neglected because it has most powerful ability for enhancement of data security and by the replacement of sensitive informations with tokens organisation also field more comfortable when they think that now there are minimization of risk of data breaches. This is again the thing I am explaining that I have explained already in question number 1 that even if there are attackers who want to hack personal information of others by gaining their excess to toknized get data then they would not be able to decipher authentic information if they don't have corresponding tokens. So it is like a second layer of protection on sensitive information.
Data tokenization is a great way or method which is very helpful for organisations complying with various data protection regulations and their standards so if I given example then payment card industry data security standard are those organisations that have requirement of businesses for handling payment card information so that they may protect it by using some of the most authentic and strongest security measures. In this way toknization becomes most powerful method for making all these requirements because it allows different organisation to reduce amount of personal data of others which they store so in conclusion I must say that it is not only simplyfying compliance efforts but also playing a role in reduction of potential effect of breach on both organisation and customers.
Data tokenization is very versatile and easy to implement which is another plus point in it because it could be implemented on various types of sensitive information like credit card numbers and social security numbers and there are various tokenization solutions that are available and could also be integrated into existing systems. This is a practical security measures for all sizes organizations.
Operational efficiency could also be improved to a greater extent by data tokenization process. For analytics,testing and development without exposing original information tokenized data could be used. In this way organization maintain integrity of their data.Tokenization also cause minimization of complexity and cost associated with security of personal data because there are very few resources that are required for protecting tokens compared to original data.
Data tokenization have many benefits as well as some limitations so let's discuss them in detail:
| Benefits | Limitations |
|---|---|
| Toknization is a process of replacing personal data with tokens for reduction of risk of data breaches so it is beneficial for both customers and organisations | Toknization is a process about which we can say that it may not be suitable for all data types and specially for those informations that require frequent access which needs to be processed in there authentic form. |
| Tokenization is a process which is helpful for organisation for completing data protection requirements like PCI DSS and minimize the amount of personal information stored | Tokenization processes could introduce latency, if there is a need of large volume of data to be tokenized or to be detokenized so it is another limitation. |
| Tokenization is a process which have a lot of versatility because it could be applied to different types of personal information of others and can also be integrated into existing systems in an easy way | Tokenization is a method which have complexity in its key management because key management practices are crucial for securing tokens and for ensuring their retrieval in a secure way at the time of requirement. |
| Tokenization is also very helpful in improving operational efficiency because tokenized data could be used for analytics, testing without exposing authentic personal information of others | Tokenization is a process in which there is no mathematical transformation of original data so tokens can't be reverse for obtaining original information so it is not encryption process. |
|---|---|
| Tokenization is not more complex in terms of cost because there are requirement of very few resources compared for protection of original information so it is not complex and costly | Tokenization is a process at which organisations rely and it cause and introduce a level of dependency and risk if systems and providers experience any issues. |
Tokenization and encryption are not exactly similar at all. It is true that both these are techniques that are used for protection of sensitive information but there are a lot of differences in their approach and level of security they both provide so let me explain it further.
Here is a scenario that I am sharing as an imaginary example that if you have a credit card and you need to make up purchase online and when you are entering your credit card information on website then they are asking for protection for preventing any unauthorised access so now let's discuss that how in this way tokenization and encryption could be used.
Encryption
If we talk about encryption then credit card information would be transformed by a complex mathematical algorithm into unreadable format which is called ciphertext. This text could only becripted back into original credit card information with the help of a specific encryption key.
As an example;
Let's say that my credit card number is "1234 5678 9012 3456". So through encryption it could be transformed into something like "XyZaBcD12345678". After that this encrypted data would be sent over internet at merchant server for further processing and then merchants server would hold encryption ki which would be needed letter to me for decrypting the ciphertext and retrieving of my original credit card numbers for getting my payment.
Now it is a time for applying whole scenario at the process of tokenization.
Tokenization
In the process of tokenization sensitive informations which include the credit card information would be replaced with a token which would generate very randomly and it would be a identifier that there is no relationship it have with original data and after that token would be stored in place of actual credit card information.
Now again suppose my credit card number is "1234 5678 9012 3456" so it could be tokenized in something which would be shown like this "TOK12345678". After that the token would be stored in merchant server and would be used in future for any transactions and actual credit card number now is securely stored in another system which is token vault, it would be controlled only by at trusted the third party tokenization service provider.
When I would have to make any purchase then token would be sent to merchant server which would be then transferred to tokenization service provider and then this service provider requires original credit card number which are saved in token vault which would in return processes the payment and then send back a response to merchant.
Now here is a brief comparison between both these processes I am explaining below;
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Toknization offers data security and sensitive data is stored separately which reduce risk of data breaches|Encryption also use data security and its totally relies upon strength of encryption algorithm and security of encryption key.
If we talk about encryption then encrypted data needs to be created for its use and it would only be done if encryption key is stored securely|If we talk about tokenization then token could be used instead for making transactions more easier and there is no need of original data for most of transactions.
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Encryption is helpful in protecting data while it is being transmitted or stored but one time when it would be decrypted get a would be automatically exposed to others|If we talk about tokenization then it is responsible for keeping personal information separate from token which provides on going protection to it.
Steem is a blockchain which could be regarded as social media platform which is the responsible for rewarding users who create quality content and reward is given in the form of token steem. Uniqueness of this platform is the combination of social media and blockchain technology for the creation of decentralization and incentive ecosystem.
Tokenization is defined as the representation of real world asects or digital assets as tokens at a blockchain and these tokens could be traded in the form of buying and selling and tokenization gained popularity due to a reason of offering increased liquidity, fractional ownership like benefits.
Smart media tokens are some particular type of tokens at steem blockchain which allow content creators to create their own tokens and build their own decentralized applications(DApps). Smart media tokens provide a great way to all users to tokenize their content, all services for creation of their on economics within the steem ecosystem.
Content creators monetize their work directly which is a big advantage of smart media token. By creation and distribution of their own tokens content creators can also reward other audience for their engagement like up voting ,comments etc. It can results in a more faster growth of engaged and interactive community.
In terms of token design and distribution smart media tokens also offer flexibility because content creators can set their own rules for issurance of tokens, distribution of tokens etc. After that you could make four customization for suitability of specific requirements of each creator and community.
Smart media tokens also have great potential to revolutionize the way content is distributed and monetized. Smart media tokens are responsible for empowering content creators by giving them more control on their work and permitting them to directly engage with their audience as well as it could also lead towards are more fair model for content creation we are creators would be rewarded totally based upon value they provide.
Smart media tokens can also faster a sense of ownership and a sense of community participation because by holding and using smart media tokens individuals also would become stakeholders in ecosystem which could incentivize them to be very active for the contribution and support of community.
Smart media tokens success depends upon various factors I am describing below:
- Smart media tokens success depends upon adoption.
- Smart media tokens success depends upon usability.
- Smart media tokens success depends upon overall value proposition they offer.
Aldo just like other emerging technology is there are different risk in association with smart media tokens like regulatory considerations celebrity and misuses etc.
Saludos amigo, importante saber que la toquenización de datos cumple un rol muy importante en esta era digital, ya que las grandes empresas que manejan información sensible pueden protegerla mediante esta conversión, una desventaja es que esta información no puede ser recuperada en su forma original.
Suerte amigo.
First of all I want to say thanks to you that you comment on my post and give your precious time to me and then I agree that data Tokenization plays a key role in this digital ira and it is also helping different organisations that are holding large amount or large volume of sensitive informations of different users. I also visiting your entry which was quiet informative and interesting so I wish you good luck in your participation again
You make it so clear, there are actually a few things I learned from you, to inform my post. hahaha
Thank you so much for stopping by my post and I am happy that you learnt many more things from my post and also you take guidance from my post to share your thinking and there is nothing bad in it we all are here to learn from each other I wish you success in your participation
Hey friend u have shared really good details of each point with us thank u and good luck
I am happy that you visited my entry and you consider my post a much detailed inside of each and every question I am happy to see your comment and I wish you success in your entry also
Thank u and my pleasure
@khursheedanwar your post on Steemit Crypto Academy about tokenization is fantastic! You've explained it in a straightforward way making it easy to grasp. I appreciate how you've used real-life examples to illustrate the concept. Keep up the great work! 👍🚀
I am happy that you really like my post and you give your most important time precious time to my post as well as yes I tried my best to given best possible examples from my real life and I tried my best to make it more practical and now I am happy and it is the result and consequence of my efforts that uses like you are understanding each and everything that I have explained in a more easy way which was my main motive and yes sure I would continue to share such a good one time with all of you I also visiting your entry which was I wish you success in your entry also
Hello dear friend @khursheedanwar
I hope you are doing well . You have published a well written article. Data tokenization plays an important role for the protection and security of our sensitive information . Along with the security it also enhance our satisfaction that it will not be easy to stole our data .
Tokenization act as the layer of protection against our data and encryption is also another method in this regard. Encryption and tokenization are indeed two different methods of security but their goal is same.
I appreciate your efforts and wish you success in this Engagement Challenge.
Brother hopefully you would be very well and I am happy to see your comment on my post it means a lot for me and your comment is really very motivating important as well as value able for me I also visited your entry which was quite informative for me and I learned a lot and there were many things which I don't mention but I learn from your post
I agree with you that get a tokenization is a crucial method if we want to secure our sensitive information and along with this it also responsible for enhancement of our personal satisfaction that our sensitive information is now safe and its cannot be stolen by anyone
Yes there is a lot of difference between toknization and encryption because in tokenization tokens are created and encryption method is not about creation of tokens but it is about creation of different mathematical algorithms and both provides protection to our sensitive data I also appreciate your comments at my entry as well as I wish you success in this engagement challenge I also visiting your entry I wish you good luck again for it and for your future also
Main ummid Karti hun ki aap theek honge aur main aapki baton se ittefaq Karti hun jo aapane byan ki hai ke Data tokenization ke bare mein Ham yah kah sakte hain ki yah hamari information ko secure karne ka ek dusra naam hai kyunki yah ek aisa method hai jismein random tokens generate ho sakte hain jo ki koi bhi Nahin pahchan Sakta aur na hi koi unauthorised user vahan tak access le sakta hai.
Smart media tokens ki success ke liye कौन-कौन se factors ki requirement hai aapane isko bahut acchi Tarah se cover kiya hai aur main aapki tamam baton se ittefaq Karti hun aur overall agar Main Baki questions ke answers dekhun To aapane Kahin per bhi Koi kami Nahin chhodi aur aapane hamesha ki Tarah apni baat ko manvane ki salahiyat rakhi hai aur main aapki ISI kamyabi per ki aap ke andar yah talent hai kya aap apni baat dusron tak pahuncha sakte hain isi ka Main abhi per aapko good Luck kahati hun aur aapke future ke liye bhi Dua go Hun
aapka meri post per itna jyada extensive comment karne ka bahut jyada shukriya aur maine bhi aapki post ko visit kiya hai aur mujhe visit karne se pahle hi Puri ummid thi ki aapane bahut achcha participate Kiya Hoga aur aap meri ummid per Puri utari hai jiski vajah se main aapko dad deta hun aur main aapka shukr gujar hun ki aapane meri post ko bhi apna time Diya hai aur meri post ke bare mein Apne bahut hi khubsurat alfaaz mein review bhi share kiye Hain
Aapane bilkul theek farmaya hai ki maine is topic ko bahut acche se explain Kiya aur Main is baat se disagree nahi kar sakta kyunki mujhe pata hai ki maine is topic ko explore karne ke liye kitni mehnat ki hai aur uske bad mein is kabil hua Hun ki main aap sab ke sath is topic ko share kar sakun iske alava agar main baat karun aapke comment ki to usmein aapane bilkul theek farmaya hai ke smart media token ke liye agar Ham success chahte Hain To hamen different factors ko Apne mind mein rakhna hoga aapka meri post per comment karne ka ek bar fir se bahut bahut shukriya Allah aapko hamesha khush rakhe
Abracaste plenamente los tópicos del concurso, no dejaste nada afuera. 😄 Solo queda resaltar la importancia que tiene esta tecnología en las empresas que necesitan seguridad en la información confidencial.
Saludos y éxitos.
Hola amigo @khursheedanwar, ya hoy no estás en el club. Debes encender para seguir en el club5050.