The current recovery methods, which often require manual insertion of descriptors from various file formats like txt or json, are deemed inadequate and cumbersome. To address these challenges, a new file format called Wallet Descriptor Export File (WDEF) has been proposed. This format is designed to encapsulate all necessary wallet data and metadata into a single file, thereby simplifying the recovery process significantly. The WDEF format aims to standardize the way output descriptors are stored, exported, and shared, facilitating easier fund recovery for bitcoin wallets, especially those involving multiple signers, non-standard derivation paths, or situations where the recoverer lacks expertise in using seed phrases.

The proposed WDEF format includes a detailed specification that outlines its structure, consisting of various records such as wallet name, description, additional recovery information, recovery height, and descriptors for receiving and spending bitcoins. Each record within the file is designed to contain a type, length, value, and checksum to ensure data integrity. The specification mandates a unique Name record for each file, with optional yet unique Description, any number of Info entries, an optional RecoveryHeight, and at least one descriptor record. It also specifies an identifier and version number at the beginning of the file to prevent misinterpretation by decoding software. The document further details the encoding and decoding processes, emphasizing the importance of adherence to these standards to prevent failures during these operations. Files conforming to this standard are suggested to have the .wdef extension, distinguishing them from other file types.

Supporting this initiative, a reference implementation in Rust has been developed, serving as an experimental platform to test and refine the proposed file format. Community feedback is encouraged to enhance the recovery process further and ensure the proposed standard is robust and universally applicable.