Ripple and XRPL Labs Join Digital Asset Recovery Protocol DeRec Alliance

As an analyst with a background in blockchain technology and digital asset recovery, I am excited about the formation of the Decentralized Recovery (DeRec) Alliance. The alliance, which includes founding members Ripple and XRP Labs, Hedera blockchain network developer Swirld Labs, and the Algorand Foundation, aims to simplify digital asset recovery through open-source methodologies.


The Decentralized Recovery (DeRec) Alliance, an organization established to develop a common approach for digital asset recovery, has welcomed new members: Ripple and XRP Labs. Hedera blockchain network developer Swirld Labs and the Algorand Foundation are also part of the founding members. Together, they aim to create an open-source and industry-standard methodology to facilitate easier digital asset recoveries.

DeRec Alliance Simplifies for Crypto Asset Recovery

In simpler terms, a formal announcement highlights that modern Web3 apps demand users who are tech-savvy and capable of managing the responsibility of safeguarding sensitive data such as digital assets, private keys, accounts, and passwords. The need for centralized methods of account recovery like decentralized recovery, self-custody, and cold storage becomes obsolete with these advanced applications.

The Alliance was founded by Dr. Leemon Baird, also the co-founder of Hedera. Baird stated:

The DeRec Alliance is a collaboration of individuals and entities dedicated to streamlining the process of safeguarding and retrieving digital assets, accounts, passwords, and other confidential information in Web3, making it as user-friendly as traditional Web2 platforms. We advocate for unity among blockchain communities and industries to establish standards and open-source solutions that ensure security without adding unnecessary complexity.

As a researcher studying the DeRec Alliance, I can share that this collaborative group consists of various organizations such as The Hashgraph Association, Casper Association, Acoer, and Constellation Network, among others. The HBAR Foundation, Revive Labs, The Building Blocks, Blade Labs, and BankSocial are also part of the Alliance. Our role as members is to contribute valuable insights and perspectives towards the development of policies aimed at creating an interoperable standard for asset recovery. By doing so, we aim to facilitate a smoother process for the adoption of cryptocurrencies and other digital assets.

As a researcher, I’ve come across an intriguing development in the crypto space: The DeRec Alliance, spearheaded by RippleX’s Senior Vice President Markus Infanger. According to Infanger, this alliance addresses one of the most significant challenges hindering widespread crypto adoption. By establishing clear-cut standards for key recovery, the alliance empowers users with greater control and instills confidence in them. Wietse Wind, founder and CEO of XRPL Labs, shares the same perspective, emphasizing that user-friendly solutions for key recovery are indispensable to gaining traction among mass retail markets.

The DeRec Alliance includes a Technical Oversight Committee (TOC), comprised of founding members with terms lasting two years. This committee plays a role in providing guidance on the Alliance’s governance framework and essential policies.

DeRec Protocol Shares Secrets among “Helpers”

As a protocol analyst, I’d describe it this way: I’m an advocate for the Alliance’s innovative Decentralized Recovery (DeRec) approach. This open-source method employs a secret-sharing concept to manage data recovery. When you opt in, you select trusted entities, such as businesses or friends, to serve as helpers. These assistants store encrypted pieces of your secret without accessing its actual content. If needed, you can recover your secret by combining the shares from the helpers. Each helper’s contribution doesn’t reveal any information about the original secret. Moreover, even if you lose your primary recovery device or only have half the helpers disclose their shares, you can still reconstruct the entire secret. This added layer of security is particularly valuable in case of phone loss.

As a crypto investor, I understand the importance of maintaining the secrecy and availability of my investments using decentralized protocols like DeRec. To ensure this, DeRec employs regular confirmation checks to make sure helpers still possess their shares of the secret. Furthermore, the protocol initiates automatic re-sharing whenever the secret is altered or when a helper joins or departs. Throughout this entire process, I don’t have to disclose any helper’s identity or the total number of helpers involved. Similarly, helpers remain unaware of each other’s identities as well.

Read More

Sorry. No data so far.

2024-05-09 19:07