Prominent figures within the Hedera and Algorand ecosystems, including the HBAR Foundation and the Algorand Foundation, jointly announced the establishment of a novel consortium known as the DeRec Alliance on January 11. This alliance’s primary objective is to develop a decentralized digital asset recovery system. The introduction of the DeRec Alliance took place during the Crypto Finance conference in St. Moritz and was presented by Leemon Baird, co-founder of Hedera, and John Woods, CTO of the Algorand Foundation.
The DeRec Alliance, as stated by two decentralized finance (DeFi) experts, aims to streamline the process of safeguarding and reclaiming digital assets by drawing upon traditional Web2 expertise. Baird emphasized the importance of blockchain networks and various industries collaborating to create standards and open-source code, ultimately ensuring the security of Web3 capabilities with utmost simplicity. He emphasized the need for the industry to facilitate user-friendly key recovery solutions.
Baird also noted that Hedera and Algorand represent just the initial participants in this endeavor and that they have already garnered support from banks, credit unions, and numerous wallet software projects. In conjunction with the DeRec Alliance, they introduced the open-source Decentralized Recovery (DeRec) protocol as a standardized approach to secrets management. This protocol operates on the concept of sharing secrets among a designated group of trusted entities, such as friends or organizations, enabling users to recover their secrets when necessary. Importantly, each assistant’s share does not divulge any information about the original secret, ensuring a secure recovery process even if the user loses their recovery device.
