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Hedera and Algorand collaborate on decentralized _ for wallet recovery
The DeRec Alliance, formed by key players in Hedera and Algorand ecos, aims to create a decentralized digital asset recovery .
Hedera and Algorand ecos, represented by HBAR Foundation and Algorand Foundation, recently announced the DeRec Alliance at the Crypto Finance Conference in St. Moritz.
The alliance aims to develop a decentralized recovery for digital assets, streamlining the process and aligning with conventional web2 practices. Co-founders Leemon Baird of Hedera and John Woods of Algorand introduced the initiative during a joint panel.
The DeRec Alliance seeks collaboration across the industry to establish standards and open-source codes for user-friendly key recovery processes. Baird emphasized the involvement of banks, credit unions, and ious wallet software projects extending beyond Hedera and Algorand.
The Decentralized Recovery (DeRec) open-source protocol was introduced alongside the alliance. This standardized approach utilizes secret sharing among designated helpers, ensuring secret recovery without information exposure.
Woods stressed the protocol’s focus on a smooth user experience, featuring automatic confirmations and resharing. This development comes in the context of security challenges in the defi space, with the U.S. Commodity Futures Trading Commission issuing regulatory recommendations on Jan. 9.