Organizations within the Hedera and Algorand ecosystems are developing a new account recovery standard that seeks to simplify the use of cryptocurrencies and Web3 applications.
The blockchain industry is full of innovative solutions that are revolutionizing different sectors, from finance to supply chain, medicine, education, public administration, among others. However, for many, the use of these solutions requires deep and sophisticated knowledge, especially to avoid the risk of losing access to private keys and, with it, to digital assets.
For this reason, Hedera and Algorand are collaborating to create a new, open-source, interoperable account recovery standard for the blockchain industry, which will dramatically simplify cryptocurrency recovery and other assets.
The new standard, called DeRec (Decentralized Recovery), can help increase user trust and security in the blockchain industry.
According to Swirlds Labs, one of the platforms that are part of Hedera, DeRec will facilitate the recovery of private keys, passwords, wallets and more, in a simple and secure way for users.
An interoperable recovery standard that will boost cryptocurrency adoption
If people can access their crypto assets securely and without the risk of losing them by forgetting a password, then more people will be interested in adopting cryptocurrencies, blockchain ecosystems Hedera and Algorand say.
Both stressed that the new account recovery standard, which they are developing together, will help users keep their keys, passwords, accounts and other digital assets safe, eliminating the complexity and risk of forgetting them and simplifying the overall user experience.
The HBAR Foundation, Algorand Foundation, Hashgraph Association, Swirlds Labs, and DLT Science Foundation are currently working on the development of this new standard, in addition to industry partners The Building Blocks and BankSocial.
DeRec Alliance
On the other hand, in addition to working on the development of DeRec, Hedera and Algorand have also created an organization called DeRec Alliance, which can be joined by all entities and projects that want to simplify the use and adoption of blockchain technology and Web3.
Leemon Baird, co-founder of Hedera, he highlighted The goal of this organization is to bring together all entities, projects and people that are part of the blockchain industry and the Web3 ecosystem, to make “the process of securing and recovering digital assets, accounts, passwords and other secrets as simple as existing Web2 experiences.”
The creation of this alliance follows the Hedera Council's allocation of 4.860 billion HBAR tokens as funds to support and strengthen the growth of new projects in the ecosystem and evolve towards advanced and more robust decentralized governance.
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