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Tokenization

Tokenization is defined as the process of sending sensitive information to a provider where it is replaced with non-sensitive data. With the aim of protecting data, businesses are now able to maintain the original data while securing their content. Li et al. (2019) states that blockchain uses both the utility and security tokens. Tokens are pieces of data that are used in place of other sensitive information. Asset tokenization is achieved by leveraging the Open Asset Protocol (OAP) and the Policy-Backed Token (PBT). The main question is whether the OAP and PBT are effective than the Secure Multi-Party Computation (SMPC).

Secure Multi-Party Computation

Choi and Butler (2019) states that SMPC cannot be considered to be fully effective. Sensitive input is likely to be exposed despite the application being cost-effective. SMPC cannot also support real-time environmental constraints especially in situations where there is secret sharing. Homorphobic encryptions are limited in the scope of its operation. The security of the cryptographic operations decreases when more than two parties are involved. If other secure communication channels were available, the SMPC would not be used and communication will be more stable and safe. SMPC is being applied in industries and legislative bodies to conduct pilot studies in order to guide decision making and corporates to protect their secrets.

Mathur (2019) states that PBT is effective in crowd-funding and P2P ending applications. Each node of application stores non-full data that is respective to the public and business information. Information can only be obtained when there is an authorization. Privacy protection is the main element of SMPC and helps to uphold efficiency in blockchain operations. PBT follows the rules of tokenization by changing numbers mathematically to maintain the original information while developing a new code that is not sensitive as the original information. Encrypted numbers can be decrypted. However, tokenization is different and safe. Original data is often stored in the original cloud while the non-sensitive information is used with the risk of exposing critical data to non-authorized personnel. Tokenization is not a security system but a method that prevents hackers from accessing networks in vulnerable organizations. PBT is mostly used in airline travel insurance.

Li et al. (2019) states that Open Asset Protocol (OAP) is secure than SMPC. The tool is powerful and simple and has been effectively used in bitcoin operations as it allows operations to be done in a safe manner. Issuance and transfer of user-created assets are made easy. In addition, the emergence of blockchain technology-enabled transactions is faster between two parties. Both electronic and physical assets can now be transferred easily and faster. However, OAP is slower and creates transaction delays. Mapping assets to coin requires back-tracking several transactions more than once. Despite this drawback, companies, such as MultiChain are using OAP to secure blockchain operations. Even though OAP is slower, it alongside PBT is effective and safer than SMPC. OAP is being applied in the real estate industry to tokenize rental incomes, properties and or hotel chains.

Personal Experience

Data encryption has been one of the most common practices that I have been using. I believed that storying data in the form of encryption was easy and safe. For instance, I stored my personal files in the cloud after encrypting them. However, a close friend who had the decryption key stole the information and decoded the data I had stored in the cloud. Consequently, i ended up losing my personal information which I used for my memory. Encrypted data is not as safe as I thought. Applying PBT has helped me to secure my data more. PBT stored original data that I considered sensitive in safe cloud storage. The information was later copied and modified to eliminate sensitive data and only reveal that data that was not sensitive. I felt more relaxed since it would be difficult for anyone to get access to the original information which I consider personal and sensitive.

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