What does tokenization do to production data?

Tokenization removes sensitive production data and replaces it with a surrogate value, or "token." This token is a unique identifier that has no intrinsic value or meaning outside of the system that generated it. The actual sensitive data is securely stored in a separate location, typically in a secure data vault, while the token can be used in its place within applications and databases.

This replacement process helps to reduce the risk of data exposure. If the tokenized data is intercepted or accessed without authorization, it does not reveal the original sensitive data, thus enhancing data security. Tokenization is particularly effective in protecting personally identifiable information (PII) and payment card information, allowing organizations to continue to operate and analyze data without compromising sensitive information.

While encryption does protect data during transmission, it does not alter the nature of the data itself as tokenization does. Masking adds additional layers for visual protection but does not remove or substitute the data as tokenization does. Storing data in an external database may involve possible security risks and does not directly relate to the core function of tokenization, which specifically focuses on replacing sensitive data with a non-sensitive equivalent.