Here’s Why It’s Time To Add Tokenization To Your Vocabulary
Blog Post › Innovation that Creates New Value
Are you taking the time to immerse yourself in disruptive technological advancement for your own professional development and for the future of your organization ?
Tokenization is the process of replacing sensitive data with a non-sensitive equivalent. Therefore, when using tokenization, you are ensuring that any person who gained access to your sensitive information wouldn’t be able to use that information for any real purpose.
For example, let’s say you are making a purchase at a coffee shop where Apple Pay and Google Pay are accepted. Instead of using your card, you hold your phone up to the machine and your payment is received. While this process is quite simple in our world, on the backend, it involved supplying the merchant with a series of randomly generated numbers called a “token” in the place of your primary account number (PAN). The takeaway here is that this token is meant to represent your real card information, which renders the information exchanged in that transaction meaningless to hackers. Zooming out and looking at the bigger picture, this technology can be applied anywhere, and a “token” could represent anything from a share in a company to the ownership of a piece of fine art.
“The largest taxi company owns no cars, the largest media company creates no content, the largest accommodations provider owns no hotels, the largest e-commerce company has no inventory, and a $70 billion currency has no bank branches, no CEO, and no customer service department.”
Tokenization is disrupting any industry where people have an interest in trading, protecting, or verifying the ownership of valuable assets on a blockchain and is at the heart of the development of “new economies.”In his TEDx Talk, Matthew Roszak demonstrates the no-limit nature of the tokenization of things, mentioning a company called SpaceChain, which, in its own words, is a “community-based space platform that combines space and blockchain technologies to build the world’s first open-source blockchain-based satellite network, allowing users to develop and run decentralized applications in space.” Thus, this technology is expanding the frontiers of enterprise.
In conclusion, Roszak’s best advice for Fortune 500 CEOs when it comes to understanding new technology and how it will disrupt an industry is to lock your door, turn off your phone, and study the new technology for a day–or more!