Hedera and Algorand have joined forces to establish the DeRec Alliance, introducing an innovative protocol aimed at boosting the recovery and adoption of cryptocurrencies and other digital assets.
This collaboration brings together various actors from the Hedera and Algorand ecosystems, including the HBAR Foundation, the Algorand Foundation, the Hashgraph Association, Swirlds Labs, the DLT Science Foundation, and industry partners such as The Building Blocks and BankSocial.
The DeRec Alliance seeks to develop a new interoperable recovery standard that will significantly simplify cryptocurrency recovery and adoption.
The protocol, known as Decentralized Recovery (DeRec), was officially launched during the CFC St. Moritz conference in Switzerland, highlighting the importance of delivering a seamless user experience in a Web3 environment that is becoming increasingly relevant.
Dr. Leemon Baird, co-founder of Hedera and co-CEO of Swirlds Labs, and John Woods, CTO of the Algorand Foundation, shared the news during a morning panel on Layer 1 superpowers.
Baird stressed that the DeRec Alliance is the result of a collective effort of professionals and organizations to simplify the asset recovery process on the blockchain, reflecting the hassle-free experience of Web2.
“The DeRec Alliance is a group committed to simplifying the process of securing and recovering digital assets, accounts, passwords and other secrets, much like existing Web2 experiences”
Dr. Baird stated, encouraging the collaboration of all blockchains and the industry in general to create standards and open codes necessary to guarantee security in the Web3 ecosystem.
John Woods highlighted the importance of a seamless user experience and minimizing the risks associated with self-sovereignty to bring projects like Hedera and Algorand to a global audience.
DeRec addresses one of the biggest user problems in Web3, key ownership
The DeRec protocol presents a standard approach to secret management based on the exchange of secrets between helpers, such as friends or companies.
Each part of the helper reveals no information about the original secret, and half of the helpers can provide the user with their parts to reconstruct the secret, even when the two-factor recovery device is lost.
The protocol includes regular automatic confirmations and re-sharing mechanisms to maintain the integrity of the recovery process.
The DeRec Alliance, committed to simplicity and security in digital asset recovery, invites interested organizations to join and adopt technologies based on its protocol.
This advancement in the collaboration between Hedera and Algorand not only represents a milestone in the blockchain industry, but also a significant step towards creating standards that will benefit Web3 users around the world.
The DeRec Alliance and its DeRec protocol are ready to drive mass adoption of decentralized recovery, paving the way for a more accessible and secure user experience in the emerging world of cryptocurrencies and digital assets.