> For the complete documentation index, see [llms.txt](https://docs.dcn.foundation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dcn.foundation/part-ii-architecture/02-architecture/07-wallet-architecture/recovery.md). # Recovery > *Recovery enables users to regain access to Physical Digital Assets without compromising security. The DCN Standard defines flexible recovery models that support self-custody, enterprise deployments, and regulated environments while ensuring that recovery never weakens the trust model.* *** ## Introduction One of the biggest barriers to mainstream adoption of digital assets is the risk of permanent loss. Traditional blockchain wallets often depend on a single private key or seed phrase. If that secret is lost, forgotten, or destroyed, access to the assets may be permanently lost. The DCN Standard addresses this challenge by introducing a **flexible recovery framework**. Rather than relying on a single recovery mechanism, DCN supports multiple recovery models that publishers can adopt based on their use case, regulatory requirements, and security policies. Recovery is therefore a **policy-driven capability**, not a mandatory feature of every Physical Digital Asset. *** ## Recovery Objectives The Recovery architecture is designed to: * Prevent permanent asset loss * Preserve user ownership * Support multiple recovery models * Maintain hardware-backed security * Prevent unauthorized recovery * Minimize recovery complexity * Support consumer, enterprise, and government deployments * Preserve auditability Recovery must never reduce the security of the Physical Digital Asset. *** ## Recovery Architecture Recovery involves multiple trusted participants. ```mermaid flowchart LR User Wallet["Companion Wallet"] PDA["Physical Digital Asset"] RecoveryService["Recovery Authority"] Publisher Blockchain User --> Wallet Wallet --> RecoveryService RecoveryService --> Publisher Publisher --> Blockchain Blockchain --> PDA ``` The exact recovery path depends on the selected recovery model. *** ## Recovery Principles Every recovery mechanism should follow these principles. #### Owner First Recovery exists to restore access for the legitimate owner. #### Policy Driven Recovery rules are defined by the Publisher. #### Secure Recovery requires strong verification. #### Auditable Recovery actions should be recorded. #### Optional Recovery is enabled only where supported by the asset profile. *** ## Recovery Models The DCN Standard supports multiple recovery models. | Recovery Model | Typical Use | | -------------------- | ------------------------ | | Self Recovery | Consumer assets | | Guardian Recovery | Family accounts | | Publisher Recovery | Gift cards, vouchers | | Enterprise Recovery | Employee credentials | | Government Recovery | National identity, CBDCs | | Multi-Party Recovery | Institutional assets | Each model provides different balances between usability and decentralization. *** ## Self Recovery Self Recovery allows users to restore access independently. Typical mechanisms include: * Recovery phrase * Backup device * Hardware backup * Encrypted recovery package The Publisher does not participate. This model provides maximum user independence. *** ## Guardian Recovery Guardian Recovery allows trusted individuals or organizations to assist. Examples include: * Family members * Friends * Legal representatives * Business partners Recovery succeeds only after the required number of guardians approve the request. ```mermaid flowchart LR Owner Guardian1 Guardian2 Guardian3 Recovery Owner --> Recovery Guardian1 --> Recovery Guardian2 --> Recovery Guardian3 --> Recovery ``` *** ## Publisher Recovery Some asset types require Publisher involvement. Examples include: * Gift cards * Payroll cards * Loyalty cards * Event tickets The Publisher verifies ownership according to its policies before restoring access. Publisher Recovery should not be used for assets intended to provide unrestricted self-custody unless explicitly accepted by the user. *** ## Enterprise Recovery Enterprise assets often belong to organizations rather than individuals. Typical examples include: * Employee credentials * Corporate payment cards * Access badges * Treasury assets Recovery may require approval from enterprise administrators before access is restored. *** ## Government Recovery Government-issued assets may require recovery procedures defined by law. Examples include: * Digital identity * Driver licenses * CBDCs * Social benefit cards Recovery may involve official identity verification and authorized government services. *** ## Multi-Party Recovery High-value assets may require multiple independent approvals. ```mermaid flowchart LR Owner Guardian Publisher Enterprise Recovery Owner --> Recovery Guardian --> Recovery Publisher --> Recovery Enterprise --> Recovery ``` Recovery is completed only when the configured policy requirements are satisfied. *** ## Recovery Workflow A typical recovery process follows these steps. ```mermaid sequenceDiagram participant User participant Wallet participant Recovery participant Publisher participant Blockchain User->>Wallet: Request Recovery Wallet->>Recovery: Submit Request Recovery->>Publisher: Verify Identity Publisher-->>Recovery: Approved Recovery->>Blockchain: Update Authorization Blockchain-->>Wallet: Recovery Complete ``` *** ## Recovery Verification Recovery requests should be verified using one or more methods. Examples include: * Identity verification * Guardian approval * Multi-signature approval * Device attestation * Publisher authorization * Enterprise approval * Recovery token * Biometric verification (optional) No single verification method is appropriate for every deployment. *** ## Recovery Policy Every Publisher should define a recovery policy. Typical policy elements include: * Eligible asset types * Recovery participants * Required approvals * Waiting period * Audit requirements * Notification requirements * Recovery limits * Revocation process Policies should balance security and usability. *** ## Recovery Events Recovery actions should generate lifecycle events. Examples include: * Recovery requested * Recovery approved * Recovery rejected * Guardian confirmation * Ownership restored * Device replaced These events support transparency and auditing. *** ## Recovery Security Recovery introduces additional security considerations. Implementations should protect against: * Social engineering * Identity fraud * Unauthorized approvals * Recovery replay attacks * Insider abuse * Stolen recovery credentials Recovery should require stronger verification than routine transactions. *** ## Lost Physical Digital Asset Loss of the physical asset does not necessarily mean loss of ownership. Depending on publisher policy, the owner may: * Suspend the lost asset * Recover ownership * Transfer authorization to a replacement asset * Revoke the original asset This minimizes the impact of accidental loss. *** ## Replacement Assets Following successful recovery, a replacement Physical Digital Asset may be issued. The replacement receives: * New Device Identity * New Secure Element * New Hardware Root of Trust while preserving: * Asset ownership * Blockchain association * User permissions * Recovery policy This ensures that compromised hardware is never reused. *** ## Recovery and Privacy Recovery procedures should minimize disclosure of personal information. Only the information necessary to complete the recovery should be exchanged. Recovery records should be protected according to applicable privacy and regulatory requirements. *** ## Design Principles The Recovery architecture follows these principles. #### Flexible Supports multiple deployment models. #### Secure Requires strong authorization. #### Recoverable Prevents unnecessary asset loss. #### Auditable Recovery actions are traceable. #### User Focused Balances security with usability. *** ## Summary The DCN Recovery architecture enables users, enterprises, and governments to restore access to Physical Digital Assets without weakening the security of the ecosystem. By supporting multiple recovery models and policy-driven authorization, the DCN Standard eliminates one of the greatest barriers to digital asset adoption while preserving trust, ownership, and interoperability. --- # Agent Instructions This documentation is published with GitBook. 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