On January 11, prominent figures from the Hedera and Algorand ecosystems, including the HBAR Foundation and Algorand Foundation, made an exciting announcement at the Crypto Finance Conference in St. Moritz.
Leemon Baird, co-founder of Hedera, and John Woods, Chief Technology Officer of the Algorand Foundation, introduced a groundbreaking initiative known as the DeRec Alliance, aimed at creating a decentralized recovery system for digital assets.
The primary objective of the DeRec Alliance is to simplify the process of securing and recovering digital assets, aligning it with the user-friendly experiences commonly associated with Web2 platforms.
Baird emphasized the importance of establishing standards and open-source code across the blockchain industry to enhance safety within the evolving landscape of Web3.
He stressed the need to make key recovery user-friendly and called upon all blockchain entities to collaborate in creating compatible standards across different wallet software and blockchains.
Notably, Hedera and Algorand are not alone in this venture.
They have already garnered support from banks, credit unions, and multiple wallet software projects, showcasing a strong industry-wide commitment to this crucial initiative.
In conjunction with the DeRec Alliance, the Decentralized Recovery (DeRec) open-source protocol was introduced as a standardized approach to secret management.
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This protocol is built on the concept of secret sharing among a designated group of helpers, whether they be friends or businesses, allowing users to recover their secrets when needed. Each helper’s share reveals no information about the original secret, ensuring security and privacy even if a user loses their recovery device.
John Woods emphasized the importance of a seamless user experience and the need to minimize risks associated with self-sovereignty.
The DeRec protocol achieves this by incorporating automatic confirmations for the retention of secret shares by helpers, automatic resharing when secrets change or helpers join or leave, and a system that protects the identities or numbers of helpers, keeping them unaware of each other.
This initiative is especially timely as the DeFi space grapples with ongoing security challenges.
Just a day prior to the DeRec Alliance announcement, the United States Commodity Futures Trading Commission released recommendations aimed at mitigating DeFi-associated risks, underscoring the industry’s need for enhanced security measures.
Inquiries were made to the developers for additional details about this groundbreaking initiative, which has the potential to significantly bolster the security and usability of digital assets in the evolving blockchain ecosystem.
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