Benefits of data tokenization
Enhanced security features
Data tokenization greatly mitigates the risk of data breaches by making sensitive information inaccessible. Even if tokens are intercepted, they’re essentially useless without the mapping data held securely within the tokenization system. This not only safeguards data but also permits secure data trading, resulting in the protection and control of sensitive information meaning businesses can trade data confidently and securely.
Promoting data ownership
With the advent of tokenization, you can now trade your data and intellectual property on your own terms, turning it into a valuable asset. By creating and selling data tokens on decentralized platforms, individuals gain control over their personal information, choosing when and how to monetize it. This not only opens up a new way to make money but also boosts your privacy and ownership. You get to choose who can access your data and under which conditions, paving the way for a more transparent and user-focused data economy.
Compliance with regulations
Tokenization helps businesses comply with various data protection regulations such as GDPR, HIPAA, and PCI DSS. By incorporating decentralized identification (DID) alongside technologies like SoulBound tokens – which securely store personal data – companies can minimize the exposure of sensitive data, lessen the scope of compliance requirements and avoid hefty fines.
Lower risk of internal threats
Tokenization separates sensitive data from its usage context, limiting access to the original data. This separation reduces the risk of any internal threats and unauthorized access.
Reduced scope of PCI DSS
For businesses handling payment card information, tokenization reduces the scope of PCI DSS compliance – leading to lower costs and simpler audits, as fewer systems need to meet compliance standards.
Simplified data management
Tokenized data is easier and more secure to manage and process. Businesses can leverage data analytics and processing benefits without exposing sensitive information – resulting in safer and more informed data-driven decision-making. Beyond simplifying data management, tokenization means your business has the opportunity to provide users with the convenience of data portability. Imagine switching healthcare providers and simply taking your data with you – no interruptions to care, and no avoidable headaches.
Tokenization puts users back in the driver’s seat of data management and transportability. They get to decide who’s given access to their information and set specific permissions: for example, in medical contexts, users can choose which doctors can view their records, resulting in a higher standard of privacy.
