Tokenization is one of the ways that backends protect sensitive information, like credit cards or social security numbers.
Sensitive information is important in many of the apps you use every day, but it’s dangerous to store and use unprotected. Tokenization replaces sensitive data with placeholders that point back to it. To tokenize your data, you’ll need a system/platform to create and manage tokens. Tokenization works in step with encryption, but in theory may be more secure.