Hedera and Algorand team up to develop decentralized system for wallet recovery
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The DeRec Alliance is composed of major players in the Hedera and Algorand ecosystems and aims to create a decentralized digital asset recovery system.
The Hedera and Algorand ecosystems, represented by the HBAR Foundation and the Algorand Foundation, recently announced the establishment of the DeRec Alliance at the Cryptocurrency Finance Conference in St. Moritz.
The alliance aims to develop a decentralized digital asset recovery system that streamlines the process and aligns with traditional web2 practices. Hedera co-founder Leemon Baird and Algorand’s John Woods presented the initiative on a joint panel.
this Drake Alliance Seeking collaboration across the industry to establish standards and open source code for user-friendly key recovery processes. Baird highlighted the participation of banks, credit unions, and various wallet software projects outside of Hedera and Algorand.
The Decentralized Recovery (DeRec) open source protocol launches with the Alliance. This standardized approach leverages secret sharing among designated helpers, ensuring that secrets can be recovered without revealing information.
Woods emphasized that the protocol focuses on a smooth user experience, with automatic confirmation and re-sharing. This development comes against the backdrop of security challenges facing the DeFi space, with the U.S. Commodity Futures Trading Commission issuing regulatory recommendations on January 9.
