Randomly generates a token value for plain text and stores the mapping in a database.Mathematically transforms plain text into cipher text using an encryption algorithm and key.In some cases, such as with electronic payment data, both encryption and tokenization are used to secure the end-to-end process. Each technology has its own strengths and weaknesses, and based on these, one or the other should be the preferred method to secure data under different circumstances. While tokenization and encryption are both effective data obfuscation technologies, they are not the same thing, and they are not interchangeable. In addition to helping to meet your organization’s own data security policies, they can both help satisfy regulatory requirements such as those under PCI DSS, HIPAA-HITECH, GLBA, ITAR, and the EU GDPR. Tokenization and encryption are often mentioned together as means to secure information when it’s being transmitted on the Internet or stored at rest.
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