Data Strategy and Privacy

On-Chain vs. Off-Chain Data Considerations

Clip: Privacy Tools & On/Off-Cahin Data Strategies

"You should treat off-chain data as trustless, which means that you cannot rely on data off-chain. But you can have some kind of proof of computation or some kind of proof of validity of that data on-chain"

— Martin Prado, Chief Information Security Officer at Ava Labs

When deciding where to store data, consider:

• On-chain storage is appropriate for:

  • Immutable, transparent, censorship-resistant data
  • Token information
  • Ownership records (like NFTs)
  • Deterministic logic

• Off-chain storage is better for:

  • Most other types of data
  • Cost-efficient storage
  • Easier processing

A hybrid approach often works best: store data off-chain but keep proofs of validity on-chain. Zero-Knowledge Proofs are an emerging solution in this space.

Privacy Principles

To maintain user privacy:

• Only collect information you actually need
• Assess the nature of the data you're collecting
• Keep on-chain complexity to a minimum
• Plan for potential future migration between on-chain and off-chain storage
• Balance security, cost, and performance requirements