Confidentiality

Definition ∞ Confidentiality, in digital systems and data management, refers to the principle of preventing unauthorized access to sensitive information. It ensures that data is accessible only to individuals or systems with proper authorization. This is achieved through various security measures, including encryption, access controls, and secure communication protocols. Maintaining confidentiality is paramount for protecting user privacy and proprietary data within digital asset platforms.
Context ∞ Confidentiality is a critical and ongoing discussion point in the digital asset space, especially with the inherently transparent nature of many public blockchains. Developments in zero-knowledge proofs and privacy-preserving technologies aim to enhance confidentiality for transactions and data. News often covers regulatory pressures for both transparency and privacy, as well as innovations seeking to balance these competing demands in decentralized finance.