Data Minimization

Definition ∞ Data minimization is a principle that advocates for collecting and retaining only the data that is strictly necessary for a specific purpose. It aims to reduce the volume of personal information processed by organizations. This practice enhances privacy and security by limiting the potential impact of data breaches.
Context ∞ In the context of digital assets and blockchain technology, data minimization is becoming increasingly pertinent due to privacy regulations and user concerns about on-chain data transparency. Discussions often center on the trade-offs between verifiable data for network security and the protection of individual user privacy. Future developments may involve more sophisticated cryptographic techniques to enable data utility without compromising confidentiality.