What is tokenization in privacy?

Tokenization is a privacy-enhancing technique that replaces sensitive data (like personal information, credit card numbers, or email addresses) with a unique, non-sensitive token. These tokens have no inherent value and cannot be used on their own, but they can be securely mapped back to the original data within a protected environment. The sensitive data itself is securely stored in a separate, controlled system, ensuring that even if a token is exposed, the original information remains fully protected. 

Unlike encryption, tokenized data cannot be mathematically restored, making it more resistant to breaches when compliance and security are priorities. For instance, Apple Pay employs tokenization to protect users’ payment information. When a user adds a credit or debit card to Apple Pay, the actual card number is replaced with a unique token, ensuring that the original card details are not exposed during transactions