What is the definition of pseudonymization in data management?

Pseudonymization in data management refers to the process of replacing direct identifiers in a dataset, such as names or Social Security numbers, with artificial identifiers or pseudonyms. This method allows for data processing without revealing the identities of individuals, effectively enhancing privacy while still enabling the use of data for analysis. By using pseudonyms, it becomes more challenging to re-identify individuals without additional information, thereby providing a layer of data protection.

This approach is particularly important in compliance with data protection regulations, as it helps organizations use personal data for analysis and research while mitigating the risk of exposing personal information. Pseudonymized data can still be linked back to the original identity, but only by those who have access to the key that can re-identify the data, thus maintaining a balance between utility and privacy.