tokenization

Vocabulary Word

Definition

'Tokenization' is when you break something down into smaller parts, or 'tokens.' Mostly used when talking about language or coding, like when a sentence is split into words.

Examples in Different Contexts

In cybersecurity, tokenization is the process of turning sensitive data into a non-sensitive equivalent, called a token, that has no extrinsic or exploitable meaning or value. A security analyst might explain, 'Tokenization protects customer credit card information by replacing it with unique identification symbols.'

Practice Scenarios

Security

Scenario:

Customer data protection should be our top priority. We need a robust method to protect their ID and credit card data.

Response:

Excellent point. I think introducing tokenization could help us improve data security significantly.

Business

Scenario:

Given the efficiency and security of digital transactions, don't you think we should consider a shift towards digital assets?

Response:

I agree. Tokenization could revolutionize how we perceive and deal with asset management.