2 Questions each on in separate document
willrun3703
Tokenization.pptxTokenization
Introduction
Tokenization protects sensitive data.
It helps secure information transmitted through the internet.
The token number serve as the reference to the original data.
Tokenization is an approach aimed at protecting sensitive data. This approach represents the original data with an algorithmically developed number to secure information transmitted through the internet (Mattson, 2016). The token number serves a the reference to derive the initial data.
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Why is tokenization needed
Tokenization is needed to digitize organization assets.
To increase assets liquidity.
To provide assets management infrastructure.
Tokenization is needed due to Its efficiency in digitizing the organizational assets. The tokenization system must be validated using the best security measures to facilitate asset liquidity (Mattson, 2016).
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data security
The tokenization system provides data processing with interfaces.
A tokenized system is isolated and segmented.
Applications can operate through tokens instead of live data.
Tokenization provides adequate storage and protection of sensitive information. It as security factor that tokenization is logically isolated from data processing systems (Mattson, 2016). This makes it possible for the process use tokens instead of live data.
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Token application
Tokenization is used to safeguard:
Bank accounts
Medical records
Drivers licenses
Voters registration
Personally identifiable information
The organization contains confidential information listed above. The process of tokenization is used to process this documents, where the primary account number is replaced with a surrogate value. The choice of tokenization relies on interpretation, auditing, and assessment entities (Rosenberg, 2013).
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Origin
The concept of tokenization emerged centuries ago.
It was used to reduce risk when handling high financial instruments.
Since 1970 similar substitution techniques have been used.
Tokenization has existed since the first currencies emerged centuries ago. This was done in the aim of reducing risk in handling high value financial instruments.
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origin
Surrogate key values have been used in databases.
Recently tokenization has been used as a security mechanism.
In the modern world tokenization is used to protect sensitive cardholder data.
In the modern world, the similar processes have been used to isolate the real data elements (Rosenberg, 2013). These concepts have been expanded to provide a security mechanism.
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Types of tokens
Security token- They protect breathing.
Asset token- These are tokens used in cryptography.
Payment token- This is a high value token used in transactions.
Tokenization can be classified in three ways. There are several combination used in these types of tokens (Rosenberg, 2013).
Singe or multi-use
Cryptographic or non-cryptographic
Reversible or irreversible.
Authenticable or non-authenticable.
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Standards
Tokenization is responsible for industrial standards.
They reduce data breaches when combined with encryption.
Tokenization is used in debit and credit cards.
Tokenization use requires a management and storage data to avoid data loss. Currently, tokenization is responsible for data protection and cryptography in most industries. Information system agencies in the U.S has stated support of tokenization to reduce data breaches and use in credit and debit cards.
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Alternative payment
Tokenization plays a role in the payment procedure.
It acts a security strategy to replace cards.
The payment token may be secured by a dynamic one.
According to the Payment Card Industry Data Security Standard, all organizations that transmit cardholder data must be protected (Rosenberg, 2013). In the payment procedure a token might be of the same length as the bank account number. When a payment request is done a token might be returned to the merchant instead of the card number. When tokenization is used in the payment data current PCI standards should be complied.
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Conclusion
Tokenization has been adopted in payment services.
It has also been used to prevent hackers.
It has been a breakthrough due to Its ability to simplify codes.
In the 21st century, most companies have adopted tokenization as a payment model. Organizations which transfer money to different countries uses tokens. Tokenization has rendered it difficult for hackers to access confidential data (Rosenberg, 2013). This is due to Its ability to simplify integration code.
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Image
This image represents application of tokenization
Source: https://www.paymentcard/tokenization.com
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Image
This is an image illustrating the tokenization process.
Source: https://www.chargbacks911.com
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References
Rosenberg, Y. (2013). U.S. Patent Application No. 13/761,009.
Mattson, K. (2016). "Systems and Methods for Distributing Tokenization and De-Tokenization Services." U.S. Patent Application 13/790,871.
