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Data minimization, a core principle of privacy laws like GDPR, requires organizations to collect only the personal data necessary for a specific purpose and retain it no longer than needed. In decentralized identity, this means users share only essential attributes (e.g., age, not full birthdate) via verifiable credentials (VCs), using zero-knowledge proofs to validate claims without exposing raw data. This reduces privacy risks and ensures compliance by limiting unnecessary data exposure and storage.
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