Steemit Crypto Academy Contest / S12W4 : Tokenization

Good evening friends , today we will be talking about tokenization, it's disadvantages, it's advantages and it's implemention in crypto world. As you go through I hope you enjoy it, because there so many detailed facts to learn.

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

Data tokenization is best defined as a way of improving data security by replacing sensitive information in a network with tokens, which acts as unique identifiers. These tokens are totally randomly generated symbols that has no meaningful information and are confusing to anyone who accidentally gains unauthorized access into the network. The most sensitive facts, are secured in a separate system, often called the token vault.

The tokenization of any data go through numerous activities or stages.

• Firstly, all sensitive data are taken to the tokenization system, the team or management developers, automatically transfer all sensitive informations into the tokenization system for the processing.

• Secondly, the tokenization system helps randomly generates tokens, in most cases each unique piece of symbol, to represent each piece of sensitive data in the network. The tokenization system, produces tokens using strong encryption algorithms technique that are permanent, ensuring that the sensitive data remains secured in the token.

• These generated token are then used instead of the original data stored safely from foreigner or third parties who intended to steel data from the network.

Tokenization has proven to be very important and powerful, that's why i was easily adopted in many communities/organizations for processing payment or data analysis etc. If a transaction or data is created, the tokenization system uses the they already created token to access the main sensitive data from the token secured vault.

Just like abstraction and cryptography, transactions and operation would be carried as if original data was accessed but not visible to foreigners.

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In summary, i would say tokenization as the name implies is the act of hide actually sensitive data with meaniless tokens to humans. Tokenization works in an awesome way, that's to say it receives sensitive data through the tokenization system that convert the each sensitive information or data into unique randomly codes or symbols.

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How important is data tokenization? Give your own opinion.

° After reading about data tokenization i discovered that data tokenization is a vital tool in this generation of data control, data sharing data security and data storage, offering a robust immunity against potential cyber attack, breaches or stealing of vita data or information.

In today's computer world, data are transfered or shared on a very large scale, so therefore protecting these data is very vital and important and so far tokenization has proven to be helpful.

° Another important reason for data tokenization's is its ability mitigate data breaches. These generation has experienced a large case in Cyber data theft, because the criminals can easily access thos vital and sensitive information.

° These have made so many has lost trust in computer technologies. When sensitive data or information is been taken or stolen, these stolen information trends to be useless to the criminals because they real data is somewhere safer.

° Unlike so many unsuccessful tech features or tools, tokenization secures information permanently to avoid reversal. Therefore all changed a permanently locked from all especially those with unauthorized access.

° Data tokenization is backed by powerful agency's that regulates and executes Data security rules and regulations.

Tokenization is back by organization like Consumer Privacy Act (CCPA) and General Data Protection Regulation (GDPR). So therefore whenever tokenization is done legal action could be filled on offenders or criminals who breaks the laws.

° Due to it's quality and assurance, trust has really been bought to users who had doubt about the the technology world, information users can freely share their data and fact with different websites or application using tokenization. Users now have courage that their information won't fall into the hands of criminals or thieves.

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In summary i would say tokenization has successful frustrated Cyber threats because even if they see the data the won't be able to use and understand it because its randomly picked. Also tokenzation has brought about loyalty and trust back to the techs world and the most important aspect of tokenization is that they had totally secured data permanently.

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Source

Benefits and limitations of data tokenization.

As we all know that tokenization is a very powerful technology that protects data, i am about to surprise you with more capacity and benefits of tokenization

• Upgraded Security: Its no news that tokenization has improved data security by hiding sensitive data with use of unique tokens. These generated tokens are useless to cyber theives who gains unauthorized access to private profile, providing a strong protection against any data theft.

• Reduces Data/ information Exposure: Tokenization has proven to be good at reducing the exposure of sensitive data to the public to avoid theft, privacy or data breech in operations and during transactions in software application or websites. Tokenization only exposes the tokens created because seems useless to the public.

• Increased Transaction Speed: All tokens are smaller than the actual important and sensitive data on stored in the vault, so therefore the processing of these tokens reduces the runtime of the transaction which in return produce a quality and faster transaction output. So therefore transaction done on tokenized sensitive data runs faster expected.

• Improves Flexibility: Tokenization enhance the the flexibility of the data organization and usage in different ways namely as big data, data analysis, data testing, or even customer service, without openly displaying the actual these important data. So therefore tokenization automatically improves the efficiency and use of data.

• Trust: Implementing data tokenization on any platform would improve the trust user have for your Blockchain or platform because tokenization assures them third parties cant access their most sensitive information or data.

Limitations

As we know everything good thing has it's down sides, tokenization also has its flaws and bad sides. Below 👇 i will be explaining them.

√ Its Irreversible: Tokenization was created to be permanent thats to say irreversible, so therefore whenever a data is tokenized into a token it can not be converted back. Although this special characteristics, which is a benefit can also be a downside of tokenization.

√ Token Store: a tokenized system is also expected to have a very secured token store to securely store the address or link between tokens and original data. Securing the token store is important, because the cyber theat could use it as a loop hole to manipulate the platform.

√ Complexity Using Tokenization Tool: systems are really very complex and complicated and needs the help of a specialist or professional which might be stressful, for an ordinately user to set it up the complexity my confuse the user.

√ Costs: The implementation and maintenance a of tokenization tech would be very expensive because its a unique features and there are so many tools used ensured to produce this sort of quality technology and many tool used are really expensive.

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

No, tokenization and encryption are two different technology, although the have some little similarities but the ways of operation are different than what each of them do.

Tokenization is the act of using tokenization system to permanently convert sensitive information into unique and randomly generated tokens that are totally useless to if the token falls on the wrong person hand.

Features of tokenization

• Totally converted into token
• Tokens can't be reversed back
• Its a permanent process
• Tokens are useless to foreigners
• randomly generation

For example

If mr john sends money to me, through a decentralized exchange where everyone can see our transaction history. If foreigner trys to see the tokenized transaction or password, the token would be confusing and useless to the foreigners.

Encryption on the other hand is a feature also seen cryptography that uses a specific algorithm to hide important or sensitive information, most especially password that give access to platform or profile or in an empire, security institution where secret messages are passed , the end product are usually known as cipher text or private key. This cipher text can also be reversed using a specific key or code used to encrypt it, this act is also known as decryption.

Feature of encryption

• Plain text are converted into cipher text or private key
• Cipher text can be reversed using a special algorithm and key back to plain text.
• Its a temporary process, because it can be decrypted.
• Private keys can still be used for login in, if held by the wrong person.
• Has a specific key or code for encrypting and decrypting.

Example

Just as we all know in steemit, our password are all encoded in cipher text, this has been very efficient because attacker can't memorize the password but the only side effects is that if a hacker or thief access the key the can access your profile and do anything they wish until the password is reset.

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

Steem is the official native coins for steem Blockchain and steemit social media platforms, this of the the crypto asset used to reward users for creating content on steemit. Now this steem was came into existences because of the smart media token technology implemented on steem Blockchain.

Smart Media Token (SMTs), has proven to be very important as the also help reduce transaction cost to the lowest value, infact with the help of smart media token transactions are as low as zero transaction fee on steem Blockchain. That's to say all transactions on steemit are free, whether buying, selling, delegating or investing are totally free.

Smart Media Tokens (SMTs) are powerful and awesome features on steem Blockchain and other steem created platforms, this technology has improved how activities done on steem blockchain most especially transaction history.

Source

SMTs are processed unique tokens that was implemented on steemblockchain to protect sensitive facts and data on Steem blockchain or any platform there are wish to work with. These tokens helps article creators & communities moderators to fully control their hard work or article creating a more decentralized platform for all user's to get their rewards.

SMT's is really a powerful project because it makes it easier for anyone who decides monitize their content, this is a feature that has kept steemit far above other social media platforms like Facebook, TikTok and Twitter also known as "X". SMT has made the social media platforms become ba mutually beneficial platform where everyone benefits for their hardwork and creativity

Conclusions

Tokenization system are very important especially whenever privacy is prioritize over everything because when ever sensitive informations go through a tokenized system the token because as secured as possible.

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Thanks for going through remember starrchris cares ❤️.

_{I am inviting @hamzayousafzai @razzor @khursheedanwar @isha-rehman @mccoy02}