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What are Tokens and what is Tokenization?

Dec 20, 2022

This month's technical term breakdown is on tokens and tokenization.

Token / Tokenization

Tokens is an industry-standard way of securing sensitive data on the internet.

A token is a unique identification symbol that replaces a piece of sensitive data.

Tokenization is the process of creating a token that maps to the original sensitive piece of data via an authorization server. Tokens are used in many use cases: to store sensitive data (i.e. address, personal identification), authentication (i.e. access into accounts), authorization (i.e. API access), crypto/blockchain, etc.

Here is an example based on retrieving your bank account number via tokens.


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