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Data archival policies for identity systems include tiered storage: hot (frequently accessed VCs on fast databases), warm (infrequently used data on cost-effective storage), and cold (expired credentials on encrypted archives). Blockchain-anchored timestamps ensure immutability, while cryptographic sharding splits data across secure nodes. Compliance tools automate retention schedules (e.g., "Delete after 7 years per GDPR"). Users can request archival exports for personal records, balancing accessibility with privacy.
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