Tokenization vs. Encryption: Which is Better for Your Business?

Tokenization Vs. Encryption Which Is Better For Your Business
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No matter what company you have, it is essential to prevent its data. Nowadays, many software companies are under the effect of data breaches. Also, some of the companies have lost their precious customer data. It is all because the hackers across the globe are very fishy. They have new technology and techniques to hack your computer systems and leak your personal information in the market.

In such challenging times of threat, you need to prevent your company’s data at any cost. It isn’t straightforward to prevent the data, which is very precious for you. Many companies prefer securing their monetary profits rather than the personal information and data of their customers. However, this is necessary to create doubt in your mind that every asset, be it your data or your money, is very precious for your company.

Tokenization vs. Encryption

When it comes to making your company safe and secure, data protection and security are critical. There are two types of methods that companies use to protect their data: tokenization and encryption. It depends on the requirements of different companies if they want to go for tokenization or encryption. Both the methods are best in themselves but, different companies use different methods.

It would be best to consider several important factors like your company’s size, comfort level, cost, and goals when looking for the best method for securing your company’s data. It does not matter which method you will use; the ultimate goal must prevent your data and reputation. Nowadays, your personal information and data can go for many wrong things, so you need to keep it very safe and secure. Some necessary information regarding these two types of methods is in this post.


Tokenization Vs. Encryption

It is the process in which the actual data converts into tokens. These tokens are not significantly valued, and therefore, it is tough to get the data out of them. These tokens stay safe in the token vault, which is used widely for replacing the actual data which the customers use. For example, suppose that you are making a transaction on platforms like Spotify. The company will process your data into a token and, it will represent all the data by way of that took in its self. There is no personal information stored in tangible form for the company. It makes the data safe and secure, and no other form or person cannot use that data. For more information, you can visit bitcoin trading platforms like this software.

  • How is it advantageous?

Talking about the advantages, you are going to get with tokenization, there are many of them. During tokenization, it does not compromise your data at all. It is available in its original form, but the company uses the token number to access your personal information. Some companies are facing data breaches nowadays, but tokenization can prevent that. It shows the token number, which is entirely useless for hackers.

When the company uses tokens to represent the customer’s data or itself, it reduces the time. When every tiny piece of information for the actual data comes into use, it consumes a lot of time, and therefore, the company has to implement a lot of time in it. However, when the company goes for tokenization, the data is stored in a token. Your personal information is available with a third-party database, and therefore, the company does not require to maintain that. Also, it saves a lot of costs as their staff does work for managing your data.

  • Drawbacks of tokenization

Sometimes, tokenization makes it very difficult to regain the data which turns into a token. For processing information, the data go through detokenization and tokenization, making it complicated.

There are many payment processor applications available which support tokenization. However, many companies do not offer a preferred payment processor for your tokenized information, and therefore, you may face problems.

If you are willing to go for tokenization, there are several software windows available in the market. TokenEx is one of the most popular tokenization service providers. Apart from this, you can go for bluefin and Imperva.


Encryption is also one of the most popular methods used for storing information by many companies. It is safe and secure because it uses mathematical algorithms that turn your personal information into non-readable information. This process is called ciphertext, and you will require an algorithm and an encryption key to make the text readable again. For example, suppose that you are providing your mailing address to a company. Then, the company can use the ciphertext to represent your mailing address, and when the company wants the data again, it can use the algorithm and encryption key to make the text visible again. Of course, the key used for encryption can be different, and it all depends on the type of encryption used. The most important types of encryption used by many companies are full disk encryption and file-based encryption.

  • Advantages of encryption

Many companies widely use encryption to protect not only one type of data but many. It can store information like credit card information, but it is very well used to protect unstructured data. It can save files and emails, and one can use it for safeguarding an entire document.

When you decrypt the data, the security will not be vulnerable at all. It is because encryption does provide you with the facility of providing your decryption key to someone else. It does not create any security breach, and therefore, it is a better method of preventing your data and information.

Speed is something that makes encryption far better as compare to tokenization. It is because encryption uses the method of algorithms for making your personal information safe and secure. Therefore, it takes a little less time than tokenization, making it easier for you to do the work quickly. Also, encryption can work without taking the size of the database that you prefer to safeguard.

  • Drawbacks of encryption

There is only one key that can decrypt your information when you are storing it through encryption. It makes your data a little less secure as if the hacker got a decryption key, he can quickly get your data.

When the algorithm creates your personal information into ciphertext, it can create problems with the software functionality.

Some of the most popular encryption software vendors that you can go for are Bitlocker and AxCrypt. Apart from these two, you can also go for McAffee to provide you with complete disk encryption services.

What should you choose?

Your decision must be dependent on several important factors. It would help if you looked at your company in the first place before you decided to protect its personal information. It would be best to consider the security risk, the data you need to protect, and the cost factor. Compliance is essential to be looked after when you want to choose the best method, and your company size matters the most. Considering these factors will make it very sophisticated to choose the suitable method, be it encryption or tokenization.

Thank you for reading!