Hedera and Algorand forge an alliance for crypto recovery
Hedera and Algorand jointly launch Decentralized Recovery (DeRec) protocol for robust digital asset security.
DeRec protocol uses trusted entities, secret sharing, and automatic confirmations for enhanced recovery.
The Hedera and Algorand alliance aligns with industry needs for improved safety standards.
In a groundbreaking collaboration, blockchain ecosystems Hedera and Algorand, including the HBAR Foundation and Algorand Foundation, have united forces to address the challenges of decentralized wallet recovery.
The newly formed Alliance, consisting of key figures from both ecosystems, introduces an innovative Decentralized Recovery (DeRec) protocol. This protocol sets out to enhance digital asset security and recovery, offering a robust solution to a critical need in the blockchain industry.
The DeRec Alliance
The DeRec Alliance was unveiled at the Crypto Finance Conference in St. Moritz by Dr. Leemon Baird, the co-founder of Hedera, and John Woods, the CTO of the Algorand Foundation.
The centrepiece of the DeRec Alliance is the Decentralized Recovery (DeRec) protocol, a pioneering approach to managing digital secrets. This open-source protocol is grounded in the concept of secret sharing among trusted entities, such as friends or businesses. Users can recover their secrets with the assistance of these trusted entities, ensuring security without any single party having complete access to the information.
The DeRec protocol includes automatic confirmations to guarantee that helpers retain shares of secrets. Moreover, it facilitates automatic resharing in response to changes in secrets or modifications in the helper group. Crucially, the identities or the number of helpers involved in the process remain confidential, adding an extra layer of security and privacy.
Addressing DeFi security challenges
This strategic initiative by Hedera and Algorand addresses ongoing security challenges in the decentralized finance (DeFi) space. The DeRec Alliance’s efforts align with the broader industry’s need for improved security measures, echoing recent recommendations from regulatory bodies like the United States Commodity Futures Trading Commission.
Dr. Leemon Baird emphasizes the importance of collaboration across the industry to establish unified standards and open-source code, aiming to bolster safety within the Web3 environment.
With banks, credit unions, and various wallet software projects already participating, the DeRec Alliance indicates a growing interest in developing a more secure and user-friendly framework for digital asset management. This collaborative effort marks a significant leap forward in establishing a standardized, decentralized recovery protocol, potentially setting a new industry standard for wallet safety and trust in digital asset technologies.
By forming the DeRec Alliance and introducing the innovative DeRec protocol, Hedera and Algorand are laying the foundation for a more secure and user-friendly DeFi ecosystem.
