Definition ∞ Off-chain compromise refers to a security breach that occurs outside of a blockchain’s distributed ledger, typically involving centralized services or personal devices. This type of compromise often targets user credentials, private keys stored locally, or vulnerabilities in exchange platforms. Unlike on-chain attacks that exploit protocol weaknesses, off-chain compromises exploit external systems or human error. The consequences can include the unauthorized transfer of digital assets.
Context ∞ News of off-chain compromises, such as exchange hacks or phishing incidents, frequently underscores the security risks associated with digital assets held outside of direct user control. These events highlight the importance of choosing reputable platforms and employing robust personal cybersecurity practices. Users must recognize that blockchain security does not extend to external systems where assets might be stored or accessed.
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