Which of the following best describes a token in the context of tokenization?

A token, in the context of tokenization, is a unique identifier that represents sensitive data without compromising its security. Tokenization involves replacing sensitive data, such as credit card numbers or personal identification, with a non-sensitive equivalent known as a token.

This token serves as a reference that can be used in place of the original data for processing or storage purposes while the sensitive data is kept secure in a separate, controlled environment. The token itself does not hold any meaningful value and cannot be reverse-engineered to reveal the underlying sensitive data.

By using tokens, organizations can minimize the risk of data breaches, as the actual sensitive information is not exposed to systems that need to process it. This is crucial for maintaining data privacy and compliance with regulations like PCI DSS in the payment card industry. Other options do not align with the fundamental purpose of tokenization and do not adequately describe what a token is in this context.