Tokenization – A Revolution in Data Encryption

Tokenization is one of the optimum strategies used in computer science that allows sensitive data to be replaced by an identifying text string. In the concept of tokenization, this string is stored and known as token to help you keep the risk of exposing the original information at bay. No matter what industry we belong to, data plays a starring role everywhere, and helps us bridge the gap between our products and their prospective buyers. But, we can only reap its innumerable benefits, if it is stored per PCI requirements in a secured environment. Hence, the amalgamation of maintaining its secrecy and quick accessibility is one of the building blocks for any venture to stay ahead in today’s cut-throat competition.

The Hardware Security Modules (HSM) catered by Kryptoagile vouch for complete security of your data by helping you convert your sensitive data into secured tokens. Right after conversion, they can be exported or stored in a secured environment for reuse. In order to fetch the data back, the respective token is sent to the token database. Once the token is authenticated, the requested data is returned in a secured environment.

Tokenization has become extremely popular owing to its integration with multiple business verticals to safeguard their sensitive data. And, at times integrating it with any organization’s cryptographic infrastructure may become a daunting task. But, with Kryptoagile’s HSM devices, it becomes as easy as counting 1, 2, 3.

This eminent technology is majorly used in card based payment processing for various financial transactions. According to Payment Card Industry Data Security Standards (PCI DSS), the stored data of any cardholder needs to be in unreadable format. But, at times retailers, traders need the cardholder’s data if any transaction requires to process the request pertaining to refund, additional purchase, etc. Through tokenization, we can reduce the scope as well as cost of PCI compliance since the cardholder’s data gets converted into secured tokens. Let’s understand it through healthcare industry, which includes highly sensitive data pertaining to patient’s treatment, diagnosis, tracking, etc. Compromising data in this field may lead to major health issues, and national/international emergencies as well. Well! Here the significance of tokenization certainly remains on rise due to the criticality of business. The same goes in case of education industry where in managing various educational records including student record, payment details, academic research can be an uphill task in the absence of tokenization.

Kryptoagile’s Vision towards Tokenization

The foundation of tokenization solutions designed by Kryptoagile is based on two core concepts including automation and customization backed by infallible encryption architecture. This fusion enables the user to experience holistic solutions for their business environment.


Unlike the tokenization technology integrated in the HSM devices by various HSM providers, Kryptoagile’s tokenization integrated products are not merely known for providing black box solution. They are acknowledged as smart boxes that include intuitive user interface to let system administrators define customized parameters for unique tokenization process per their organization. It facilitates the user to set various variables encompassing salt, bytes to output, masking characters and iteration count for every token created.


The automation mechanism of Kryptoagile’s products brings ease to the tokenization process if it is about integration. In order to integrate these HSM devices for tokenization, you just need to integrate a host application for communicating with HSM.

Hash-Based MACing (HMAC)

This technology is just like tokenization wherein a hashed message authentication code is used to authenticate and verify data. This hashed message authentication code is used in the form of string, which is responsible for producing tokens that need to be verified through host database for data conversion.

Point-to-point Encryption (P2PE)

Safeguarding data at the time of capturing it can have the finest impact in terms of reducing the issues pertaining to data security and compliance. A point-to-point encryption (P2PE) solution is a fusion of secure devices and processes, which encrypts data right from the point of its interaction until it reaches the recipient for decryption.

Advanced Encryption Standard (AES) Encryption

If you are in the quest of an alternative to tokenization, AES encryption can be the best fit for you. It encrypts data per AES encryption algorithm. This data encryption mechanism is implemented in software as well as hardware for encrypting the data having sensitive nature.

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