Encryption
Scrambles data into ciphertext. A key reverses it. Best for data at rest and in transit.
Comparison
Tokenization vs Encryptionwhich does your data need?
They protect data in different ways, and most teams use both. Here's the short answer, then how to choose.
Tokenization
Swaps the value for a token. The original stays in a vault. Best for keeping real values out of apps and AI.
Two controls, two jobs.
Same input, very different output, and very different exposure downstream.
Encryption
Transforms data with a cryptographic key. Anyone with the key can recover the original.
- Input
- +91 98765 43210
- Output
- 8f2c…e91a
- Recovered by
- decryption
Tokenization
Replaces the value with a token. The original lives separately in a secure vault.
- Input
- +91 98765 43210
- Output
- +91 47218 90563_stx
- Recovered by
- authorised detokenization
Pick the control for the exposure.
Choose the situation closest to yours.
Encryption
Data sitting in a database or backups
Protects stored data from anyone without the key. Standard for data at rest.
Side by side
What each control changes.
QuestionEncryptionTokenization
- What changesEncryptionThe value becomes ciphertextTokenizationThe value is replaced by a token
- What a downstream system seesEncryptionCiphertext, or the original after decryptionTokenizationA token, never the original
- How the original is recoveredEncryptionDecryption with a keyTokenizationAuthorised detokenization from the vault
- If the data leaksEncryptionSafe only while the key stays safeTokenizationToken is useless without vault access
- Usual jobEncryptionProtect data at rest and in transitTokenizationKeep originals out of apps, models, and third parties
They are not substitutes
Each solves a different problem. Vaultkey provides tokenization and vaulting so supported workflows can use tokens instead of original values. It does not replace encryption or other security controls.
In practice
How it works in an AI workflow.
Models and agents get tokens. Only authorised steps ever see the real value.
1. Your app
Collects a phone number or ID.
2. Vaultkey
Vaults the original, issues a token.
3. LLM or agent
Works with the token only.
4. Detokenize
Authorised step restores the value when needed.
FAQ
Frequently askedquestions.
Use the right controlfor each exposure.
Keep original values in a controlled vault, and protect data at rest and in transit with encryption.