tokenized

Tokenized refers to the result of tokenization, a process that converts information into tokens or digital representations. The specific meaning varies by context, but generally a token is a unit that stands in for something else, enabling easier processing, storage, or transfer.

In natural language processing, tokenization splits text into discrete units called tokens, which may be words, subwords, or characters. Tokenization decisions affect model vocabulary, handling of punctuation, and alignment with languages that have rich morphology. Downstream processing assumes a sequence of tokens rather than raw text, making tokenization a foundational step in many NLP systems.

In data security and payments, tokenization replaces sensitive data with non-sensitive tokens that map to the original data in a secure vault. The tokens can be used in systems in place of actual data, reducing exposure and helping meet privacy or regulatory requirements. The mapping between tokens and real data is typically controlled by a trusted token service provider and is reversible only through the vault.

In finance and digital assets, tokenization refers to representing real-world assets as digital tokens on a blockchain or distributed ledger. Tokenized assets can enable fractional ownership, programmable rights, and easier transfer, but they also raise regulatory, custody, and liquidity considerations. The approach aims to improve liquidity and accessibility while introducing new compliance and risk management challenges.

Limitations include reliance on a token vault or platform, potential security risks if the vault is compromised, interoperability and standardization gaps, and the fact that not all data or assets are suitable for tokenization. See also tokenization, natural language processing, blockchain.