Steemit Crypto Academy Contest / S12W4 - Tokenization
I hope everyone has a fantastic time while taking in the Steemit Engagement Challenge S12-W4's informative theme . Following epic entries of the participants' under the specified theme. I became curious to learn more about this new subject and, after conducting some study, I offered my own viewpoint about you all. I'm hoping that my contribution will be worthwhile as well.
| What is data tokenization and how does it work? Give your own opinion |
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Data Tokenization
Data tokenization is similar to replacing words in a secret code. It is a technique for protecting private data such as credit card details. Instead of storing actual integers, A random token is used. The token can be changed back to the original data if needed, but only with the right access or key. It allows you to keep data safe and still use it when needed for a specific time period.
How does it works
Data tokenization replaces private information with distinguishing tokens, such as blanks or random numbers, while maintaining a secure mapping between the original information and the tokens. This is how it goes.⬇️
- Data Entry
Sensitive information such as credit card numbers or personal information is transmitted to the tokenization system when it needs to be processed or stored.
- Creating Tokens
To represent sensitive data, the tokenization system generates a random unique token. There is no apparent connection between this token and the original data.
- Wallet for Tokens
The token is stored in the database or used in transactions, not the actual data. This ensures that no sensitive information, even within the company's systems, is ever exposed in raw form.
Hence , Data tokenization is a secure method for organizations to store and use data, replacing sensitive information with tokens, thus safeguarding private information.
| How important is data tokenization? Give your own opinion. |
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Data tokenization is crucial for a number of reasons. Such as some of mentioned below as ⬇️
- Privacy & Security Concerns
Tokenization enhances security by preventing the original storage or transfer of sensitive information, making it harder for attackers to access and compromise sensitive data.
- Risk Minimization
The risk of data breaches is greatly reduced by using tokens instead of real data. Without the appropriate encryption keys, the tokens are meaningless, even if an attacker gains access to them.
- Scalability and flexibility
Tokenization is a versatile, scalable solution for secure data management, suitable for various sectors and applications, enabling easy scalability and efficient use in sophisticated systems and databases.
Hence , Data tokenization safeguards data privacy, legal obligations, and client confidence, making it a top priority for businesses handling sensitive data.
| Benefits and limitations of data tokenization. |
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Without a doubt, data tokenization has a number of advantages, but it also has certain drawbacks. Let's look into both are mentioned below as ⬇️
| Benefits | Limitations |
|---|---|
| Tokenization enhances data security by replacing sensitive data with tokens, which are useless without encryption keys, even if attackers gain access. | Tokenization implementation can be challenging and may call for modifications to current processes and systems. |
| The impact of a data breach is reduced due to attackers' inability to acquire useful data, and tokens can be instantly cancelled and changed. | Encryption keys are crucial for tokenization's security, but theft of these keys can lead to a potential breach. |
| Tokenization enables organizations to continue operations despite security incidents due to its easy management and replacement of tokens. | Tokens are secure, but only decoded systems can use them, potentially hindering data sharing or analytics. |
Hence, Data tokenization enhances data security and compliance, but organizations must evaluate their unique demands, restrictions, and technology advantages and disadvantages to determine its best solution.
| Are Tokenization and encryption the same thing? Explain your answer, giving a practical example |
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Tokenization and encryption are crucial for data security, but they differ fundamentally. A practical example illustrates the distinctions.
Tokenization
Tokenization secures sensitive data by replacing it with a non-sensitive placeholder, ensuring private information isn't disclosed in its original form. However, tokenization can't be undone without mapping access.
Justifying
Tokenizing credit card information prevents individuals from identifying the original card number, as it lacks the mapping linking tokens with actual numbers, even if they gain access to the token.
Encryption
Encryption protects data during transmission and storage using a mathematical technique and decryption key, making it unreadable without it. Reversible encryption allows data restoration.
Justifying
Email content is encrypted before transmission using secure providers like HTTPS, allowing the recipient to decrypt and read the message if they have the decryption key.
Hence, Tokenization and encryption are crucial data security methods, converting data into a secure, reversible structure and replacing sensitive data with tokens for increased protection.
| Steem and Tokenization, what are Smart Media Tokens? Give your own opinion. |
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Smart Media currencies (SMTs) are a concept introduced on the Steem blockchain, allowing communities and content producers to create their own customized currencies.Some of important specifications are mentioned below as ⬇️
Steem blockchain allows users to create unique SMTs, each with unique characteristics and applications, which can serve as rewards, access, or native currency for specific communities or content platforms.
SMTs aim to boost content production and interaction on specific platforms or communities by using personalized tokens to reward content producers and increase user engagement.
Users can acquire SMTs by contributing to the community or producing valuable material, which can be exchanged or converted within or outside the Steem ecosystem.
Steem cryptocurrency and other SMTs aim to facilitate cross-community transactions and interactions using Steem blockchain's technology and consensus procedures.
Hence , Smart Media Tokens (SMTs) are initially proposed on Steem blockchain, They also hold potential to revolutionize digital media ecosystem interactions by adapting to evolving bitcoin and blockchain industries with fast growing success.
https://twitter.com/UShaharyaar/status/1707835458355437795?t=QwIH3a2KID4YF9q8vXT0vQ&s=19
I agree with you that data toknization is a process by which you can securely save your information which is most important for you like your gravity card numbers so that any cyber attack may not hack your personal information and for this purpose there are different processes in the working of data tokenisation and after that a random token would generate for protection of your personal information
I agree with some of the benefits that you have explained regarding this process which include minimising the risk of data breaches as well as you have also explain benefits like less compliance effect and all these benefits are commendable as well as you have also explain some of the limitations of this process agree with all of them
I wish success and good luck to you in this engagement challenge in which you put your maximum efforts to participate I wish you success in this engagement challenge and may you have many many more in your life
Data tokenization is indeed a very significant method for the security measures against our data.
You are very right here it actually provides the layer of protection to our data and enhance its security.
I wish you success for this engagement Challenge and also invite you to visit my entry.
Thanks for in detail analysis of my sharing participation and shared your valuable feedback. Stay Blessed to you.
Main bahut khush Hun ki aapane istifa FIR ise engagement challenge mein participate Kiya aur aapane bahut acchi Tarah se explain Kiya hai ke Data toknization method basically kya hai iske alava main aapki baat se ittefaq Karti Hoon ke is method mein ek person ki personal information ya sensitive information ko secret code ki form mein sev kar liya jata hai jo ke transaction ke time per token vault say withdraw ho sakti hai.
Main aapki baat se bilkul ittefaq Karti Hun ki smart media tokens ka matlab acche content creators ko Apne rewards dena hai aur tokens ki promotion karna hai iske alava iski vajah se ham content ki production ko aur users ke dusre ke sath interaction ko bhi improve kar sakte hain to iske bahut sare Hain aapane bilkul theek kaha main aapki baton se ittefaq Karti hun aur aapko good luck kahati hun.
Hey friend, thanks for sharing such awesome knowledge, it's really appreciated..
Yea smt has really come with the motives to revolve and change the world into a better and simpler world. Thanks for going through wishing you success please engage on my entry https://steemit.com/hive-108451/@starrchris/steemit-crypto-academy-contest-s12w4-tokenization
Thanks for reviewing and dropped valuable feedback. I will access your participation too. Good luck to you.
Destaca la creación de SMT a partir de la cadena de bloques Steem, me parece fabuloso, ya que al ser descentralizada, se elimina la dependencia de la publicidad en la web que estaba muy limitada. Que buena idea que cualquier usuario pueda crear sus tokens personalizados e integrar una comunidad de consumidores donde todos ganan gracias a la monetización de sus contenidos siendo más rentable y eficaz.
¡Gracias por compartir, te deseo mucha suerte y éxitos!
¡Un gran abrazo!
Thanks for supporting 💐