Hedera and Algorand join forces to introduce a decentralized recovery protocol, DeRec, streamlining digital asset security across Web3 while preserving user privacy and compatibility with Web2 experiences.
Hedera Partners With Algorand
Representatives from both the HBAR Foundation and Algorand Foundation have come together to announce the launch of the DeRec Alliance at the Crypto Finance Conference in St. Moritz. This groundbreaking initiative aims to develop a "decentralized recovery" protocol for digital assets.
The announcement was made during a joint panel at the conference by Hedera co-founder Leemon Baird and Algorand CTO John Woods, who revealed that the two ecosystems will be working together to enable security and recovery protocols on the Web3 aligning them with the familiar experiences of the Web2.
Streamlining Security with DeRec Alliance
The DeRec Alliance is being developed to enable seamless security and recovery processes for digital assets.
Baird emphasized the importance of collaboration across blockchains, stating,
"All blockchains need to work together to create a compatible standard across all wallet software on all blockchains."
He revealed that the alliance is actively engaging in communication and partnerships with credit unions, banks, and various wallet software developers to establish and align standards.
Addressing Challenges in Decentralized Protocols
There are certain challenges associated with the decentralization and protection of digital assets, especially with the use of cryptographic key passwords. It is especially a difficult task for new Web3 users. The process can be time-consuming, particularly for those unfamiliar with self-custody. Furthermore, the secret keys need backups in place as a contingency in the case of device malfunctions or security breaches.
The DeRec system introduces users to a more accessible way to regain access to their secrets when they need to tackle the challenges of decentralized protocols.
Functionality of DeRec Protocol
The Decentralized Recovery or DeRec protocol operates on the principle of secret sharing among a specific group of trusted individuals or entities. This could include friends or businesses. The system enables seamless recovery by providing automatic confirmations that helpers retain for shared secrets. The resharing process is automatic if secrets are changed or if helpers join or leave a group.
The protocol depends on a "siloed" sharing model that prevents each helper’s data from revealing any information about the original secret.
A noteworthy aspect of the DeRec protocol is its commitment to a privacy-preserving experience. Users utilizing the recovery system can enjoy enhanced privacy, with no requirement for the disclosure of identities among the involved parties. Additionally, the system guarantees recovery even in cases where a user misplaces their recovery device.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
