The DeRec Alliance- Efforts for Simplification of Digital Assets Recovery
XRPL Labs and Ripple join Algorand Ecosystems and Hedera as the inaugural members of the DeRec Alliance
Leading enterprise blockchain and crypto solutions provider Ripple, along with XRPL Labs, the developer of wallets and software for the XRP Ledger, have joined forces with Swirlds Labs and Algorand Foundation founding members of the DeRec Alliance. These members will hold seats on the Technical Oversight Committee (TOC) for two years.
The DeRec Alliance is further strengthened by the addition of Acoer, Blade Labs, BankSocial, Casper Association, The Building Block, The HBAR Foundation, The Hashgraph Association, Constellation Network, and Revive Labs. These alliance members will contribute to policy discussions and monitor and work on developing a new interoperable recovery standard. This standard is intended to streamline the recovery process for crypto and other digital assets and facilitate wider adoption.
What is the DeRec Alliance?
The DeRec Alliance is an industry-wide effort established to create a new standard for digital assets recovery. Founded by Hedera’s co-founder Leemon Baird, it brings together key players across the blockchain landscape, including XRPL Labs, Ripple, the Algorand Foundation, and Swirlds Labs.
The Alliance’s core objective is to develop an open-source, user-friendly protocol for recovering digital asset. This protocol will move away from complex solutions like cold storage and self-custody and make crypto recovery accessible to a wider audience.
The founding members of DeRec include:
- Ripple
- XRPL Labs
- Algorand Foundation
- Swirlds Labs
In addition to these founding members, the Alliance welcomes participation from a broader range of organizations, including:
- Acoer
- BankSocial
- Blade Labs
- The Building Blocks
- Casper Association
- Constellation Network
- The Hashgraph Association
- The HBAR Foundation
- Revive Labs
How Does DeRec Work?
The DeRec protocol leverages a concept called secret sharing. When a user creates a secret, such as a private key, it is divided into fragments and distributed among a set of chosen helpers, such as friends, family, or businesses. These helpers can be anyone the user trusts.
Here is what sets it apart:
- Each helper only receives a fragment, keeping the original secret safe.
- Even if a user loses their device, recovery is possible. As long as half of the helpers provide their fragments, the secret can be reconstructed.
- The protocol ensures regular automated check-ins with helpers to confirm they still have their fragments. It also facilitates automatic re-sharing when necessary.
- For maximum security, the user never reveals the identities or even the number of helpers involved.
Benefits of DeRec
The DeRec Alliance is not just about creating protocol; it is also about the promotion of collaboration across the blockchain industry. The DeRec Alliance offers several advantages for both users and the crypto industry as a whole:
- Enhanced security- DeRec removes the risk of a single point of failure, which makes it more secure than traditional recovery methods.
- Improved user experience- By simplifying the recovery process, DeRec removes a significant barrier to entry for new crypto users.
- Mass adoption- A more user-friendly recovery system paves the way for broader adoption of digital assets and Web3 technologies.
- Interoperability-The DeRec standard is designed to work across different blockchains, fostering a more unified crypto ecosystem.
Final Thoughts
The DeRec Alliance brings together a diverse group of industry leaders with a shared vision to simplify digital asset recovery and leverage Web3’s full potential. Early adopters like BankSocial are already looking toward commercial DeRec solutions, while companies such as Blade Labs and The Building Blocks are considering the potential for DeRec to revolutionize asset ownership and user experience. The Alliance’s focus on cross-chain interoperability, backed by Casper Association and Constellation Network, also makes way for broader token adoption.
With this level of industry backing, the DeRec Alliance is expected to make significant strides in simplifying crypto recovery and facilitating user-friendly digital asset management.
