Definition ∞ Server-side storage refers to data maintained and managed on remote servers rather than on a user’s local device. In digital asset applications, this often involves storing user account information, transaction logs, private keys (in custodial services), or application state on centralized servers. While offering convenience and accessibility, it introduces reliance on the server operator for data integrity and security. The security protocols and practices governing server-side storage are critical for protecting sensitive user data and digital assets.
Context ∞ The security and privacy implications of server-side storage are a recurring theme in crypto news, particularly concerning centralized exchanges and web2 interfaces for decentralized services. Reports often highlight the risks associated with data breaches or unauthorized access to these centralized data repositories. The push towards more decentralized storage solutions and self-custody models seeks to reduce dependence on third-party servers and enhance user control over digital assets.