Definition ∞ A single use identity is a temporary, pseudonymous identifier employed for a specific transaction or interaction within a digital system. Once the transaction concludes, this identifier is retired, preventing its reuse and limiting the ability to link multiple activities to a persistent persona. This approach significantly enhances privacy by minimizing the digital footprint. It offers a mechanism for transactional unlinkability.
Context ∞ The concept of single use identities is highly relevant in privacy-focused blockchain protocols and decentralized identity solutions, where users seek to conduct transactions without revealing persistent personal information. The discussion centers on balancing privacy benefits with regulatory requirements for anti-money laundering and know-your-customer compliance. Future advancements aim to seamlessly integrate these ephemeral identities into user-friendly and compliant digital interactions.
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