Definition ∞ Privacy leakage refers to the unintentional or unauthorized disclosure of sensitive or personal information. This occurs when data meant to be kept confidential becomes accessible to individuals or entities without proper authorization. It can result from system vulnerabilities, human error, or malicious attacks. Such incidents compromise data protection and can lead to significant harm.
Context ∞ In the digital asset ecosystem, privacy leakage is a significant concern, particularly when pseudonymous blockchain addresses are linked to real-world identities or when off-chain data is compromised. News reports often discuss the implications of such leaks for user security and the regulatory push for enhanced data protection standards. The development of privacy-preserving technologies, like zero-knowledge proofs, aims to mitigate these risks in decentralized applications.