Rixon Technology gives you a high-speed, fully customizable data security platform that scales with your business.

Data breaches impacted over 422 million individuals in 2022 alone. So protecting sensitive data should be a priority if you work in an industry that deals with private data. Because once a breach has occurred, it’s too late. 

Research shows that when brands experience data breaches, 65% of customers lose trust in the brand, while 85% stop engaging with that brand entirely. The investment of both time and money it takes to secure your customers’ data today is significantly lower than the time and money it takes to repair the damage after a data breach has occurred.

Data tokenization is one of the best ways to secure information in your computer systems and online. Let’s look at what data tokenization is and whether it’s the smart choice for some of the top industries that handle personally identifiable information.  

What Is Data Tokenization?

Data tokenization is a data security process that takes secure information and protects it with nearly impossible-to-exploit encryption. The only way to access that data is with a token, which serves as an entry point to the data tokenization system. 

Data tokenization is like tucking each piece of data into an impenetrable safe. The people who need that data are provided with the key to that safe — the token — and they are the only ones who can get inside. Because data tokenization doesn’t rely on mathematical algorithms, even skilled hackers can’t get through. 

Vaultless Data Tokenization

Vaultless data tokenization is a technique used to secure sensitive information by replacing it with a random token or value that has no meaning or significance to anyone who does not have access to the original sensitive data. Unlike traditional tokenization methods that require the use of a secure data storage vault, vaultless tokenization eliminates the need for a centralized storage location.

In vaultless tokenization, the tokenization process is done on the client side, which means that the original data is never sent to a third-party storage location. Instead, the client encrypts the sensitive information and replaces it with a randomly generated token or value. This tokenized data is then sent to the server where it can be used for processing or storage without exposing the original data.

One advantage of vaultless tokenization is that it reduces the risk of data breaches or theft. Since the original data is never stored or transmitted, it cannot be accessed by unauthorized users. Additionally, vaultless tokenization can be integrated seamlessly into existing applications and workflows, making it a convenient and scalable solution for protecting sensitive data.

Data Tokenization vs. Encryption

Data tokenization and data encryption are two popular methods for improving data security across industries. 

Like data tokenization, encryption works by modifying data as it moves from one location to another across a system, so the information isn’t easily recognizable. The big difference, however, is that encryption relies on mathematical algorithms to code the data. This means that hackers (or their computers) can use math to unencrypt and access the encrypted data. 

Data tokenization doesn’t use mathematical algorithms. The only way to uncover data protected by tokenization is by using a token. This makes data tokenization significantly more secure than data encryption. 

Data Tokenization Across Industry Verticals

Let’s answer the fundamental question posed by this article: Does data tokenization make sense for your industry? 

Different industries have different needs, so it makes sense to wonder if a security measure that works for some industries also works for you. Let’s look at how data tokenization works across four vastly different industries, all of which are responsible for protecting personal data online. 

Retail & eCommerce

One of the biggest challenges in the eCommerce landscape is navigating customer data rights. These businesses deal with plenty of personal data, including: 

  • Customer names
  • Email addresses
  • Shipping addresses
  • Phone numbers
  • Credit card information
  • PayPal information

But what sets retail and eCommerce apart is the data owner’s “right to be forgotten.” You can’t just lock your customers’ data in a secure vault and leave it there forever. If customers want that information removed from your database, you must comply. 

Data tokenization solves this problem. With Rixon, you can provide information access to the right parties at the right time. And with Rixon’s privacy-grade platform, customers can toggle a switch and have their information returned to them or deleted from anywhere in the world. This means that the data is removed online, and customers maintain their right to be forgotten without you having to make sacrifices to your online security methods. 

Download Rixon’s whitepaper on Solving the Right to Be Forgotten and Other User Rights Issues for more information. 


Banks and other financial institutions are in charge of significant amounts of secure information, from credit card numbers to loan information and social security numbers. In 2022, the financial sector experienced the second-highest number of data breaches, only outpaced by the government. Losing track of a customer’s financial information can lead to identity fraud and credit implications that can follow your customers for a lifetime. And it can certainly impact whether those customers are willing to continue banking with you in the future. 

Bank tokenization is powerful and works for even the most sensitive financial information like social security numbers and routing/account numbers. Tokenized data can be used for any financial information you need to keep secure for your customers. 


Healthcare providers are required to protect patient data and transmit it securely between medical providers. HIPAA (the Health Insurance Portability and Accountability Act) requires healthcare professionals to take this security seriously or face significant legal ramifications. 

Tokenization is designed to help healthcare facilities stay compliant with these laws. Whether you’re passing patient files from one room to another or from one facility to another, Rixon’s healthcare tokenization technology ensures the data can’t be breached, even by professional hackers. 


Whether you’re thinking of a university or an ed-tech company, FERPA (the Federal Educational Rights and Protections Act) requires you to take serious measures to protect student data. Tokenization adds an extra layer of security, ensuring that nothing — from student ID numbers to grades — can be accessed by third parties. With the click of a button, Rixon’s technology prevents inappropriate data processing and data harvesting, ensuring your students’ privacy cannot be violated.

Data Tokenization Benefits Every Industry

It should be clear by now that data tokenization works to protect sensitive data regardless of which industry you work in. By armor-plating every bit of data, tokenization means that no one, from DDoS attackers to data harvesters, can gain control of the data in your system. On its own, tokenized data is useless to attackers. 

Protect Your Business With Rixon Technology

Regardless of your industry, if you deal with personal information or private data, it is your responsibility to ensure you protect that data. Rixon’s data tokenization technology provides that security for you, leaving you free to breathe easy and feel confident about the high level of security you provide your customers. 

Book a free trial today to learn more about how Rixon Technology can help your business protect its data.