Asset Recovery Protocols

Definition ∞ Asset recovery protocols are specific, predefined rules and procedures embedded within blockchain systems or legal frameworks for retrieving digital assets. These protocols dictate the conditions and steps for freezing, reversing, or reassigning virtual assets following unauthorized access or loss. They often rely on smart contract logic or multi-signature controls.
Context ∞ The discussion surrounding asset recovery protocols frequently balances the desire for consumer protection with the foundational principles of blockchain immutability and decentralization. While some advocate for their use in mitigating risks from hacks, others express concern over potential centralization of power. Future iterations of these protocols will significantly influence the perceived security and trustworthiness of decentralized finance platforms.