Tokenization and encryption are both methods used to protect sensitive data from unauthorized access, but they operate in slightly different ways. Encryption involves converting data into a coded format that can only be deciphered with a specific key or password.

This process ensures that even if a hacker gains access to the encrypted data, they will not be able to read it without the key.

Encryption is commonly used to secure data during transmission and storage, such as when sending emails or storing files on a server. On the other hand, tokenization involves replacing sensitive data with a unique identifier, known as a token.

This token is randomly generated and has no inherent meaning, making it useless to anyone who does not have access to the original data.

The actual sensitive information is stored securely in a separate location, while the token is used in its place for transactions or other purposes.

This method is often used in payment processing systems to protect credit card information. While both encryption and tokenization serve to protect data, they differ in their approach.

Encryption focuses on securing the data itself, while tokenization focuses on securing the access to that data.

Encryption is reversible, meaning that the data can be decrypted with the correct key, whereas tokenization is irreversible, as the token cannot be used to retrieve the original data. In summary, encryption is a method of encoding data to prevent unauthorized access, while tokenization is a method of substituting sensitive data with a unique identifier to protect the original information.

Both techniques are valuable tools in data security, and the choice between them depends on the specific needs of the system being protected.