Pseudonymization is the process of replacing personally identifiable information with a pseudonym, or false name, in order to protect the privacy and security of individuals. This technique is commonly used in data protection and privacy regulations, where sensitive data is transformed into a code or pseudonym that can only be deciphered by authorized parties. Pseudonymization allows for the use of data for legitimate purposes, such as research or analysis, while still maintaining the anonymity of individuals. It is a crucial tool in safeguarding personal information and ensuring compliance with privacy laws.