Finding a suitable data protection technology is totally undeniable, but it is also very difficult to pick the right data security for your business. There are a number of technical terms tossed around without much authentic information to make a start for smart business ideas. Let us first dive into knowing what data encryption is.
Data Encryption
Data encryption alters the data into another form so that people having access to the secret key, known as a decryption key, can interpret and understand it. Data, which is encrypted, is commonly known as cipher text, while decrypted data is known as plain text. Breaking a cipher includes side-channel attacks and cryptanalysis. It is used mainly to protect cardholder data, personal identification, payment card information, and so on.
Data encryption aims to protect the company’s confidential digital data, from cybercriminals, over the internet. The outdated Data Encryption System has been replaced with various new-age encryption algorithms, which yield confidentiality and several key security initiatives along with authentication, integrity, and non-repudiation. Authentication allows verification of the origin of the message received, while integration allows making sure that the content of the message has remained unchanged since the time it was sent. Along with that, non-repudiation corroborates that the sender of the message cannot deny sending the message.
Tokenization
The tokenization process involves exchanging sensitive data for non-sensitive data called ‘tokens,’ that can be used in a database or internal system without being put in a range. Just like encrypted data, tokenized data is also undecipherable and irrevocable. Tokens cannot be reversed to their original form without some data stored individually because there is no mathematical relationship between the token and its original number. Hence, any breach in the token data will not compromise the original data.
The purpose of tokenization is to secure the original data, which can only be detokenized by exchanging the tokens for the original data and can be done only by the original tokenization system.
Tokenization Vs. Encryption: Explained
The following points explain how the technologies in both tokenization and encryption differ in terms of protecting cloud data.
- The main difference is that tokenization involves tokens to secure the data, while encryption encodes the data, and a shared key is used to decrypt and encrypt it.
- Encryption is good for unstructured organizations that do not need to exchange data frequently. On the other hand, tokenization is suitable for structured information like welfare and Credit Card details, in which the process of card tokenization takes place to secure the card information.
Tokenization Vs. Encryption: Can both be Crippled?
The most important factor to consider about encryption is that it can be reversible. This is because the encrypted data can be reversed to its original form with the key if any individual has access to it. A key, or the algorithm used to secure the data, determines how sound encryption is, so a complex algorithm is required to secure the data to create a stronger form of encryption, which will make it more arduous. Whereas a simpler algorithm will make it much more facile to solve.
The data protection of tokenization is much more secure as it is protected by tokens and can only be detokenized at the original source of the process.
Tokenization Vs. Encryption: Compliance Cover
Though several controlling bodies commonly accept encryption as the most reliable source of data protection, it is reversible and can be restored to its original form whenever needed. It is also considered vulnerable and insecure by PCI DSS (Payment Card Industry Data Security Standards). This is because complying with the requirements of PCI DSS requires additional measures to adequately protect it, which would result in the additional expenditure in purchasing the additional solutions to protect the data efficiently.
So, if your organization is non-compliance due to your exposed encryption process, which might cause a breach in its confidential data, the penalty would make your company crumble to the ground.
But tokenization does not have these challenges because it does not depend on any encryption process to protect the data. It replaces your data with totally random numbers instead of using hackable encrypted code. The best part of tokenization is that it does not include the original data and is irreversible.
This also ensures that the customer’s sensitive data does not exist or reach the internal network. As a result, complying with legislation becomes less complex, hence lowering the possibility of a possible data breach. When a hacker tries to extract information from the token, they will not get much, no matter how much effort is put in. Those who are in charge go through severe security and identification in order to exchange the tokens for original data. It also reduces the need for expensive regulatory duties, and the chances of getting penalized are reduced as well.
Tokens Explained
There are several benefits that tokenization offers, such as business utility and its briskness. By using customized token schemes, including tokens that preserve length and format, sensitive data can be preserved in part, so that much of its original operational value can be preserved. Many eCommerce platforms are using card tokenization that allows the customers to pay through a secure payment gateway like Zaakpay, without the need of repeatedly entering the card information for recurring payments, resulting in an improved customer experience. During card tokenization, sensitive cardholder data is converted into a series of random numbers which are then used to identify the cardholder. The merchant usually masks the card number in this process but leaves the last 4-digit number to help the user identify their card.
The robust payment security features of the secure payment gateway like Zaakpay enable the merchant account to ensure a safe and protected transaction experience for the customers. With Zaakpay payment gateway, you can help the merchant build a strong customer base and trust, as it detects and protects the customer from external frauds. Merchants can integrate this secure payment gateway with their website and start accepting payments.
In conclusion, you can choose data security methods depending on the company size. It would be best if you consider the security risk, the data that need to be protected, and the cost factor. If you want to choose the best method, it is advisable to consider the compliance factor, as well. Considering the above factors will make it easier to choose between tokenization & encryption.