Major players in the Hedera and Algorand ecosystems, including the HBAR Foundation and the Algorand Foundation, announced on January 11 the formation of a new alliance called the DeRec Alliance to create a decentralized digital asset recovery system. The alliance was presented at the Crypto Finance conference in St. Moritz by Leemon Baird, co-founder of Hedera, and John Woods, CTO of the Algorand Foundation.
According to two decentralized finance (DeFi) executives, DeRec Alliance aims to simplify the process of protecting and recovering digital assets in line with traditional Web2 expertise. Baird called on all blockchains and industries to create standards and open source code to ensure the security of Web3 capabilities without any complexity. He said the industry needs to make it easier for users to recover keys.
Baird says Hedera and Algorand are just the beginning and that they already have banks, credit unions and several wallet software projects involved. Along with the DeRec Alliance, the open source Decentralized Recovery (DeRec) protocol was introduced as a standardized approach to secrets management. It is based on the idea of sharing secrets between a designated set of assistants, such as friends or companies, and allows users to recover their secrets if necessary. Each assistant’s share does not reveal any information about the original secret, and the system ensures recovery even if the user loses their recovery device.
Image: Crypto Daily
