Ephemeral Identity

Definition ∞ Ephemeral identity refers to a temporary or transient digital representation of an entity, often generated for a specific interaction or short period. This type of identity is designed to be short-lived, enhancing privacy by limiting the persistence and linkage of personal data. It contrasts with persistent identities that remain constant across multiple interactions. Utilizing ephemeral identities can reduce the risk of long-term data exposure and tracking.
Context ∞ In the context of blockchain and decentralized systems, ephemeral identities can contribute to privacy-preserving transactions and interactions within protocols. They are particularly relevant in discussions surrounding verifiable credentials and zero-knowledge proofs, where users might only reveal minimal, temporary information. The challenge lies in balancing the benefits of privacy with regulatory requirements for identification in anti-money laundering and know-your-customer frameworks.