When it comes to modern technologies in the online environment, many believe that blockchain technology is one of the most talked about and perhaps even more innovative and fascinating. This is a technology that has shaken the traditional method of commercial payments and receipts in the various sectors. The best thing about blockchain technology is that it is highly decentralized and it is not dependent on any centralized state-run authority for making of payments and receiving them. This also has led to quite a bit of controversy and many feel that it could be a way to defraud and undermine the entire payment systems and receipt systems in the world. It would mean demining the federal and central banks because they are ones who control the entire currency system which we follow
However, there are reasons to believe that there is another token payment system that could set the whole world alive with excitement and hope. The best thing about this payment system is that it follows the conventional and currently used payment system where the legal tender money is used. The money is not used in the paper currency form but in the digitalized form. Today, when we buy something from a vendor or a brick and mortar outlet, we either pay him by cash or make digital payment. The payment is made using our credit card tokenization or debit card. Whenever the vendor swipes the card in the POS terminal, we may not be aware that our confidential personal information gets captured by default. These include the Payment Account Number or PAN. This is basically a 16-digit number that is visible in the credit or debit card as the case may be. The bad thing is that the 16 digit number is visible during the entire chain of movements as the payments get processed from the POS terminal of the vendor.
How Is Tokenization Different
Tokenization is unique and different because of a number of reasons. First and foremost, it does away with the need for having a PAN number to process the transaction. In fact, though the PAN number is required and used, it is camouflaged inside a token. The token is set of different characters consisting both alpha and numeric characters. For the common man or to the naked eye it will look like a meaningless string of numbers and alpha-numeric characters. However, inside the token, the full details of the credit card and debit card are stored and this helps the payments to be made using different types of cards. The advantage is that the customer data cannot be pilfered and made use of in the wrong manner. It .therefore goes a long way in increasing the overall security of data and information of consumers are concerned.
How Does The Future Look
The future certainly looks bright from the security and safety aspect of customer data. However, it is still in its nascent stage and it would certainly take a few more years for it to become extremely useful and widely used. However, there is no denying the fact that the advantages are far too many to be ignored under any circumstances.