Tokenization is the process when sensitive data elements are being substituted with non-sensitive elements that improve the security in tokenization system. During tokenization, digital assets are being converted into tokens that represent the value of objects.
Tokenization is a blockchain term used to refer to the process of substituting sensitive data elements with a non-sensitive, encrypted blockchain element with the aim to improve the security. Such element is called a token and is being issued by companies during the crowdfunding in the form of a digital share, a security or equity. Tokenization of the businesses is one of the most recent developments and promising ways for companies to launch their services and goods on the market.