Given the immense potential data tokenization has for the way assets are managed and secured, its impact on certain industries is of particular interest.
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
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.
“The process of data tokenization has immense consequences for how both individuals and businesses store, manage, and process assets,” says Anatoliy Lytovchenko, Head of Software Engineering and Development Office at ELEKS.
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.”
With the security of blockchain 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.
Tokenizing Real Estate Investment Enhances Accessibility
Currently, the black box of real estate investment prohibits only those but the most wealthy and well connected from entering the market. Leveraging tokenization solutions that transcribe real assets into tokenized values of any denomination is transforming this practice into something more accessible and easy.
Tokenization solutions mitigate the high costs associated with investment by providing the ability to convert assets into any token value. Blockchain technology allows assets to be divided into as many as eight decimal points. This way, real estate investors can purchase even a tiny property share.
When it comes to dealing with property sharing and transferring regulations, tokenization also helps by putting the power into the hands of individual owners. There is less red tape to wade through and fewer intermediaries to deal with when tokenized assets are controlled only by their owner.
In practice, tokenization solutions in real estate are already seeing use: Ukraine’s government seeks to blockchainize real estate titles as of 2018. The country needed a solution for “establishing a comprehensive, transparent and secure registry.” Thus, they turned to tokenization of real-world assets — in this case, real estate titles.
If you want to learn more about how blockchain can help your business increase efficiency, improve security, and set yourself apart from the competition, get in touch.
Originally published at eleks.com on February 25, 2018.