Data tokenization converts sensitive data, such as personal information or payment details, into a non-sensitive equivalent called a token. This token has no meaningful value and cannot be used by unauthorized individuals, enhancing data security. Data Tokenization is commonly used in financial transactions and compliance-driven industries like healthcare and finance to protect sensitive customer data. By using tokenization, businesses can ensure privacy and security while still being able to analyze and process the data without exposing its sensitive content, making it an essential tool for data protection.