Definition ∞ A non-custodial platform is a digital service or application where users maintain complete control and ownership of their private keys and, consequently, their digital assets. Unlike custodial services that hold user funds, non-custodial platforms facilitate transactions or interactions directly from a user’s wallet. This design minimizes counterparty risk and enhances user autonomy over their holdings. Decentralized exchanges and certain wallets exemplify this model.
Context ∞ The preference for non-custodial platforms is a growing trend in the digital asset space, driven by a desire for greater financial sovereignty and security against centralized points of failure. Discussions often address the increased responsibility placed on users for key management and the potential for lost funds if private keys are compromised. A critical future development involves improving user experience and security education to make non-custodial solutions more accessible and safer for a broader audience.
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