Artificial intelligence is used regularly in everyday science. It is defined as a term that is used to describe a machine’s ability to stimulate human intelligence. Actions that were once considered unique to humans like learning, logic, reasoning, perception, and creativity is now being replicated by technology.
Tokenization is one of the inventions which are made possible by Artificial intelligence. Tokenization is defined as the process of replacing sensitive data with unique identification symbol that retain all the essential information about the data without compromising its security or we can define tokenization as breaking up the given text into units called tokens, the token may be any number or a punctuation mark.
Shift4 Company is a software company that first invent token technology to the payment industry in 2005. Tokenization is used to prevent credit card fraud. In credit card tokenization the customer’s primary account number is replaced with a series of random numbers which is known as a token. These tokens are then passed through the internet or various wireless network needed to process the payment without actual bank details being exposed. And the actual bank account number is held safe in a secure token vault.
Earlier a method used to secure sensitive data and is known as Encryption with reversible cryptographic ‘keys’. Stanford university encryption expert said Encryption is the transformation of data into a form unreadable by anyone without a secret description key. Its purpose is to ensure privacy by keeping the information hidden from anyone for whom it is not intended. But more recently payment experts are moving from encryption to tokenization as a cost-effective way to protect and secure sensitive information.
Mostly the tokenization technology is used in the payment processing industry. Tokenization enable user to store credit card information in mobile wallets, e-commerce solution and POS software to allow the card to be recharged without exposing the original card information.