3 Key Benefits of Data Tokenization in Highly Regulated Industries

By integrating blockchain technology with real-life assets, data tokenization essentially streamlines the asset management process. Here, we will investigate how tokenization solutions are affecting healthcare, finance and real estate.

Data Tokenization Improves Patient Security

Healthcare is one of the most important industries for data security and patient protection. Specifically applying tokenization solutions to situations covered under HIPAA , healthcare enterprises can benefit from the specific security access provided by such technology.

By replacing electronic protected health information (ePHI) and non-public personal information (NPPI) with a tokenized value, administrators can more easily comply with HIPAA regulations that pertain to employee access to ePHI and protection of electronic patient information.

When patients feel secure and government standards are followed, healthcare institutions benefit. Data tokenization solutions are the key to achieving both.

Tokenization Solutions Are Making Card Payments Safer

There are multiple use cases for implementing tokenization and innovative blockchain business ideas within the finance industry. The payment card sector comes with extensive government regulations and concerns over data security. However, tokenization solutions offer a means of protecting cardholder data, such as the primary account number and magnetic swipe information. This then makes it easier for finance companies to comply with industry standards and ensure the best security for their clients.

With blockchain-enabled secure data transfer at their disposal, financial institutions can apply this innovation to real-world assets and embrace the ways tokenization solutions improve both the cardholder’s experience and institutions' own abilities to more easily adhere to card data regulations.

As described by the Payment Card Industry Security Standards Council in their tokenization guidelines, “Storing tokens instead of PANs is one alternative that can help to reduce the amount of cardholder data in the environment, potentially reducing the merchant’s effort to implement PCI DSS requirements.