Victor Vickery- Tokenization, Becoming the New Trading Trend!

1. Victor Vickery- Tokenization, Becoming the New Trading Trend! Tokenization is the process of replacing sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security. Tokenization, which seeks to minimize the amount of data a business needs to keep on hand, has become a popular way for small and midsize businesses to bolster the security of credit card and e-commerce transactions while minimizing the cost and complexity of compliance with industry standards and government regulations. Financial backers like Victor Vickeryhave begun partaking in the digital currency market understanding its need in future exchanging.

2. Examples of Tokenization • Tokenization technology can, in theory, be used with sensitive data of all kinds, including bank transactions, medical records, criminal records, vehicle driver information, loan applications, stock trading and voter registration. For the most part, any system a surrogate may use as a stand-in for sensitive information can benefit from tokenization. • Tokenization is often used to protect credit card data, bank account information and other sensitive data handled by a payment processor. Payment processing use cases that tokenize sensitive credit card information include: • Mobile wallets like android pay and apple pay; • E-commerce sites; and • Businesses that keep a customer's card on file.

3. How Tokenization Works • Tokenization substitutes sensitive information with equivalent nonsensitive information. The nonsensitive, replacement information is called a token. • Tokens can be created in several ways: • Using a mathematically reversible cryptographic function with a key. • Using a nonreversible function such as a hash function. • Using an index function or randomly generated number. • As a result, the token becomes the exposed information, and the sensitive information that the token stands in for is stored safely in a centralized server known as a token vault. The token vault is the only place where the original information can be mapped back to its corresponding token.

4. What is the Purpose of Tokenization? The purpose of tokenization is to swap out sensitive data—typically payment card or bank account numbers—with a randomized number in the same format but with no intrinsic value of its own. This differs from encryption, where a number is mathematically changed, but its original pattern is still stored within the new code—known as format-preserving encryption. Tokenization is the process of removing sensitive data from your business systems by replacing it with an undecipherable token and storing the original data in a secure cloud data vault. Encrypted numbers can be decrypted with the appropriate key. Tokens, however, cannot be reversed, because there is no mathematical relationship between the token and its original number.

5. BENEFITS OF TOKENIZATION • Tokenization makes it more difficult for hackers to gain access to cardholder data, as compared with older systems in which credit card numbers were stored in databases and exchanged freely over networks. • The main benefits of tokenization include the following. • It is more compatible with legacy systems than encryption. • It is a less resource-intensive process than encryption. • The risk of the fallout in a data breach is reduced. • It makes the payment industry more convenient by propelling new technologies like mobile wallets, one-click payment and cryptocurrency. This, in-turn, enhances customer trust because it improves both the security and convenience of a merchant's service. • It reduces the steps involved in complying with PCI DSS regulations for merchants.

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