Data tokenization is a security technique that replaces sensitive information, such as credit card numbers, social security numbers, or personal identifiers, with unique, non-sensitive substitutes known as tokens. These tokens have no intrinsic value or exploitable meaning and cannot be reverse-engineered without access to a secure mapping system.

The original sensitive data is securely stored in a separate location, often referred to as a token vault, while the tokens are used in place of the actual data within an organization’s systems. This approach minimizes the exposure of sensitive information, reducing the risk of data breaches and aiding in compliance with data protection regulations like PCI DSS and GDPR.