Comparison
Encryption turns data into ciphertext. Tokenization replaces a sensitive value with a token and keeps the original in a vault. They protect data in different ways, and applications often use both.
The difference
Encryption transforms data into a protected form using a cryptographic process. The original data can be recovered through the appropriate decryption mechanism.
Encryption is commonly used to protect data at rest and in transit.
Tokenization replaces a sensitive value with a token that represents it within a supported system.
The original value is stored separately, typically in a secure vault, and can be retrieved through an authorised process.
Side by side
When to use which
You need to protect stored data and data moving between systems. A downstream service that must process the real value still needs it decrypted before it can use it.
A supported workflow should run without the original value. Applications, AI models, APIs, and third parties can receive a token while the original stays in the vault.
They are not substitutes
Encryption and tokenization solve different problems. Vaultkey provides tokenization and vaulting so supported workflows can use tokens instead of original values. It does not replace encryption or other security controls.
FAQ
Keep original values in a controlled vault, and protect data at rest and in transit with encryption.
