> 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-v-platform/05-platform/15-verification-services/ownership-check.md). # Ownership Check > *Ownership Verification determines who has the legitimate authority to control, use, or transfer a Physical Digital Asset. It enables trusted ownership validation while supporting privacy, recoverability, and different ownership models across the DCN ecosystem.* *** ## Introduction Authenticity answers the question: > **"Is this a genuine Physical Digital Asset?"** Ownership answers a different question: > **"Who has the legitimate authority to use or control it?"** These two concepts are intentionally separate. A Physical Digital Asset may be authentic but no longer belong to its original owner. Likewise, an asset may be genuine but temporarily assigned to another person, organization, or device. The DCN Standard therefore treats **ownership** as a dynamic relationship that can change throughout the lifecycle of an asset while preserving its authenticity. *** ## Purpose Ownership Verification is designed to: * Verify legitimate ownership * Support secure ownership transfers * Prevent unauthorized use * Enable asset recovery * Support enterprise and shared ownership * Respect user privacy * Maintain an auditable ownership history *** ## Ownership Model Every Physical Digital Asset has an ownership state. Depending on the asset type, ownership may represent: * An individual user * A business * A government agency * A merchant * A custodian * A smart account * A decentralized organization (DAO) Ownership is determined by the Publisher's policy and the asset profile. *** ## Ownership Architecture ```mermaid flowchart LR Owner PDA["Physical Digital Asset"] Wallet Verification["Ownership Service"] Registry["Asset Registry"] Publisher Owner --> Wallet Wallet --> PDA Wallet --> Verification Verification --> Registry Verification --> Publisher ``` Ownership information is validated through trusted services rather than relying solely on data stored on the Physical Digital Asset. *** ## Ownership Verification Workflow ```mermaid flowchart LR ReadAsset --> Authenticate --> VerifyOwner --> EvaluatePolicies --> Result ``` Ownership verification combines cryptographic proof with Publisher policies and lifecycle information. *** ## Ownership Models The DCN Standard supports multiple ownership models. | Ownership Model | Example | | --------------- | -------------------------- | | Individual | Consumer wallet | | Enterprise | Employee credential | | Government | National identity | | Merchant | Store-issued gift card | | Custodial | Bank-managed asset | | Shared | Family account | | Smart Account | Account abstraction wallet | | DAO | Community treasury | The ownership model depends on the intended use of the asset. *** ## Holder vs Owner The DCN Standard distinguishes between a **Holder** and an **Owner**. | Holder | Owner | | ------------------------------- | ------------------------------------ | | Possesses the asset | Has legal or cryptographic authority | | May be temporary | Usually permanent until transferred | | Can use the asset if authorized | Defines permissions and policies | For example: * A company owns an employee access card. * The employee is the holder. * The company remains the owner. This distinction is important for enterprise and government deployments. *** ## Ownership Proof Ownership may be established using one or more mechanisms. Examples include: * Smart Account association * Digital signatures * Companion Wallet pairing * Publisher records * Identity verification * Enterprise directory * Government registry The DCN Standard does not mandate a single ownership mechanism, allowing flexibility across industries. *** ## Ownership Transfer Verification When ownership changes, the Verification Service confirms: * Current owner * Transfer authorization * Asset authenticity * Publisher policy compliance * Successful transfer registration Only after these checks are complete is the new ownership recognized. *** ## Ownership States An asset may exist in different ownership states. | State | Description | | ---------------- | --------------------------------- | | Unassigned | Not yet issued | | Assigned | Initial owner established | | Active | Owned and operational | | Pending Transfer | Ownership change in progress | | Transferred | Ownership successfully changed | | Recovered | Ownership restored after recovery | | Revoked | Ownership terminated | These states support the full lifecycle of a Physical Digital Asset. *** ## Privacy Protection Ownership verification should disclose only the information necessary for the requested operation. For example: A merchant usually needs to know: * The asset is valid. * The customer is authorized. The merchant typically does **not** need: * The customer's identity * Home address * Personal information * Wallet balances * Transaction history This privacy-by-design approach is a core principle of the DCN Standard. *** ## Enterprise Ownership Organizations often manage thousands of Physical Digital Assets. Examples include: * Employee access cards * Corporate payment devices * Equipment credentials * Vehicle access cards * Government employee IDs Enterprise ownership verification enables organizations to: * Assign assets * Reassign employees * Suspend access * Recover devices * Audit ownership history *** ## Ownership During Payments During payment authorization, ownership verification may confirm: * The asset belongs to the customer. * The customer is authorized to spend. * Spending policies are satisfied. * Ownership has not been revoked. This verification occurs automatically within the Companion Wallet and Verification Service. *** ## Recovery Support Ownership verification is also essential for asset recovery. Example workflow: ```mermaid flowchart LR LostAsset --> VerifyIdentity --> ValidateOwnership --> Restore --> NewAssetActivated ``` The original asset may be revoked while ownership is securely restored to a replacement asset. *** ## Security Considerations Ownership Verification protects against: * Unauthorized asset use * Fraudulent ownership claims * Account takeover * Social engineering attacks * Unauthorized transfers * Identity impersonation Strong authentication and Publisher policies reduce these risks. *** ## Future Enhancements Future versions of the DCN Standard may support: * Decentralized identity (DID) integration * Verifiable Credentials (VCs) * Zero-Knowledge Proof (ZKP) ownership verification * Multi-party ownership * Time-limited delegated ownership * Autonomous machine ownership These capabilities can extend ownership verification while preserving interoperability. *** ## Design Principles Ownership Verification follows five principles. #### Accurate Ownership information reflects the current authoritative state. #### Secure Ownership changes require strong authorization. #### Private Only the minimum necessary information is disclosed. #### Flexible Supports multiple ownership models. #### Interoperable Works consistently across all Physical Digital Asset categories. *** ## Summary Ownership Verification establishes who has the legitimate authority to control and use a Physical Digital Asset. By combining cryptographic authentication, Publisher policies, registry information, and privacy-preserving verification, the DCN Standard enables secure ownership management across consumer, enterprise, government, and decentralized environments while supporting transfers, recovery, and long-term lifecycle integrity. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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