What is the core purpose of pseudonymization techniques in data privacy?

The core purpose of pseudonymization techniques in data privacy is to reduce the identifiability of individuals in a dataset while still allowing for data analysis and processing. Pseudonymization involves replacing direct identifiers (e.g., names, social security numbers) with pseudonyms or codes, making it more difficult to link the data back to a specific individual without additional information. For instance, a hospital might replace patient names with unique identification numbers for research purposes. While pseudonymized data is not fully anonymized (as it can potentially be linked back to individuals with additional information), it significantly reduces the risk of re-identification compared to data that contains direct identifiers, enhancing data privacy and security.