Steemit Crypto Academy Contest / S12W4 - Tokenization

Hello everyone I hope you are all ok and enjoy the good life by the grace of Allah Almighty I am here for participate in the amazing engagement challenge which organised by the SteemitCryptoAcademy the name of this challenge is Tokenization so let's start;

Data tokenization is the highly effective method of safeguarding data that helps to protect data from breaches.Data breach term is highly recognized in the world of Enterprise. As the digital era grows it also become important for us to protect our data or secure it It has many methods and data tokenization helps us in this regard.

It can be achieved by restricting access to our sensitive data and the data is protected by using alphanumeric strings that are not understandable. This token is reference to the sensitive data without providing any sensitive information.

This allows system to operate on tokens rather than actual data that enhance the security.Data tokenization is a very convenient way for any organisation to protect their data.It minimizes the risk of unauthorized access and data breaches by limiting exposure to the actual information.

• For the tokenization of data it is necessary to identify the sensitive data first.

• After the identification a specific token is produced that has no meaning and did not have any relation with the real data.

• After creating token a mapping is produced between real data and token which is stored in a separate system that actually helps to identify the real data for the owner. The place where it is stored is called as token Vualt.

• Now token is substituted on the place of real data and is used in every working. In the databases also tokens are stored while the sensitive data is in token vault.

• In operation system token are used to perform necessary functions such as transactions or queries. The tokenization system translates these tokens back to the original data using the secure mapping in the token vault.

Data tokenization is a very important measure for security of data.Data tokenization helps to protect the sensitive data to provenet data breaches and also attack from hackers.

Tokenization significantly important for security and prevention of sensitive information reduces the risk of data breaches. Even if unauthorized access occurs the stolen tokens are meaningless without access to the tokenization mapping which is typically stored separately and securely.

The organization that most likely have the data tokenization gain the trust of customers. The customer mostly prefer the organization with high security protocal and data tokenization is a significant tool for the protection and also it is strong enough to gain the trust of customers.

Some reasons behind its importance are;

• Protection of data or sensitive information.
• To gain the trust of customers in any organization.
• To prevent the attacks on data by hackers or for the prevention from cybercrimes.
• Use of Secret codes or tokens is usually more faster and prefect then the usage of real data.

Data tokenization is a powerful tool that significantly raises the bar for attackers making it a important investment for organizations prioritizing data security and privacy.

As we know that when any method and source have some benefits it also have some drawbacks nothing is perfect so here I will talk about some benefits and some limitations of data tokenization.

• Tokenization provides a high level of security as compared to the traditional methods even when unauthorised parties get access to tokens the absence of organisation mapping makes the data meaningless

• It helps organisations to comply with data protection regulations by safeguarding sensitive information and privacy of customers.

• In the case of data breaches organisation minimised hacking risk beacuse the attackers get the tokens rather than the real data. This reduces the risk of identity theft and financial fraud.

• Tokenization can be applied to various types of sensitive data such as credit cards personal information and health care records making it a amazing solution across the industry.

• Implementation of security measures enhance customer trust by signaling a commitment to protecting sensitive information.

There are also many more benfits as I explained some of them.

• Initial setup costs and ongoing maintenance of a tokenization system can be significant. Smaller organizations may find it challenging to allocate resources for comprehensive tokenization.

• Integration of tokenization into existing systems can be very complicated and require planning.

• The security of tokenization relies heavily on the protection of the tokenization mapping. If this mapping is compromised the effectiveness of tokenization is compromised.

• In the situations where tokenization systems are not well-designed there are risks of token collisions such as two different data pieces can create same tokens that leads to data issues.

• While highly effective for specific types of sensitive data and tokenization might not be a solution. Some types of data may require additional security measures.

• In some cases additional processing is required that have impact on system performance.This impact is usually minimal but needs consideration in high-performance or real-time systems.

While data tokenization offers good security benefits organizations should carefully weigh these against the associated costs and considerations to determine the suitability of tokenization for their specific needs.

Tokenization and encryption are two different methods of securing data but their goal is same to secure the sensitive data.I will explain the both terms one by one.

Encryption involves transforming readable data (plain Text) to the unreadable format called as cypher text and uses an encryption key that helps to decode the encrypted data. This is a reversible process because in this method cypher text can be converted back to the original plain text if we find the decryption key.

If you encrypt a credit card number using an encryption algorithm and a specific key you can later decrypt it back to the original credit card number using the decryption key. The cards can be hacked if someone find the decryption key.

In tokenization sensitive data is replaced by a randomly generated token which is a non-sensitive place holder or reference. Tokenization is not reversible the original data cannot be obtained from the token without access to the square mapping between the token and the regional data that is stored separately.

If you tokenize a credit card number the actual credit card number is replaced with a token Without access to the tokenization mapping the token alone is not able to reveal any information about the original credit card number.

Consider a scenario where a customer provides their credit card or all the information for an online purchase:
The e-commerce website and crypts the credit card number during transaction using encryption the encrypted cadet card number is stored in database and when the payment is process to the encrypted data is decrypted using the decryption key.

While In the case of tokenization the e-commerce website could tokenize the credit card number. The actual credit card number is replaced with the token with string.The tokenized credit card number is stored in the database. When processing a payment the token is used and the mapping is referenced to retrieve the original credit card number.

Encryption transform data into secure reversible format while taknization replaces the data with non reversible tokens. These both methods are used for the data security but with different characteristics.The combination of encryption and tokenization can also be used to provide layered protection for sensitive information.

Smart Media Tokens (SMTs) on the Steem blockchain empower users of the platform to launch and sell Proof-of-Brain tokens. These tokens are usually distributed among users through algorithms based on their action that they perform on platform such as upvotes and likes.

Smart media token represent a unique type of token within the Steem blockchain and that also empower content creators to create and develop the decentralised application that offer several benefits.

Smart media token allow content creators to directly monetize their work through tokenization that is a significant advantage for the creators and help them to earn their content rewards in real time.

Content creators can use Smart tokens to enhance audience engagement. Users who upvote , comment, or interact with content creates publications can be rewarded with tokens that create a more engaged and interactive community.

Smart media tokens have revolutionized the way of content distribution and monetization.They give creators more control over their work and allow them to directly engaged with their audience potentially creating a fairer model for content compensation based on value provided.

Holding and using smart media tokens can give a sense of ownership and community participation. Token holders become stakeholders in the ecosystem and that encourages active contributions and support for the community.

• SMTs must gain widespread adoption among content creators and platforms.

• User friendley and easy integration is very important for SMTs to be embraced by content creators and consumers alike.

Smart Media Tokens hold promise for transforming the way content is created distributed and compensated within the Steem ecosystem. Their success will depend on factors like adoption and usability and the value they bring to content creators and their audiences.

Thank you