In a strategic move towards enhancing the security and accessibility of digital assets, Ripple has partnered with Swirlds Labs and the Algorand Foundation as a founding member of the DeRec Alliance.
The primary objective of the alliance is to streamline the implementation and recovery of digital assets through the innovative decentralized recovery (DeRec) protocol. This protocol enables the restoration of private information even in scenarios where users lose access to their smartphones or other devices used for two-factor authentication.
Dr. Leemon Baird, co-founder of Hedera, emphasized that the DeRec Alliance was conceived as an open-source endeavor aimed at establishing a methodology and industry standard for secure and decentralized asset recovery across all types of wallets.
“We urge every blockchain and industry player to collaborate in developing the standards and open-source code necessary to uphold the safety of Web3, eliminating unnecessary complexity,” stated Dr. Leemon Baird.
Initially launched by ecosystem pioneers Hedera and Algorand, Ripple, along with its division XRPL Labs, has now joined as a member of the Technical Oversight Committee, wielding authority for a two-year term.
John Wingate, head of BankSocial, lauded the initiative for addressing one of the most crucial challenges associated with self-storage of digital assets – the risk of irreversible loss.
Blade Labs CEO Sami Mian emphasized how incidents of loss deter users from fully engaging with cryptocurrencies, highlighting the need for improved user experience and risk mitigation measures.
“While digital asset self-custody holds immense potential for revolutionizing asset ownership and value exchange, the persistent challenge of poor user experience and the risk of permanent loss hinder widespread adoption. Through our collaboration with the DeRec protocol and active participation in the Alliance, we aim to democratize this innovation,” said Sami Mian.
In a related development, Ripple disclosed its plans to launch a stablecoin on both the XRP Ledger and Ethereum blockchains by the end of 2024. The stablecoin will be backed 100% by dollar deposits, short-term Treasuries, and other audited assets, further underlining Ripple’s commitment to fostering trust and stability in the digital asset landscape.
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