Ripple Enhances Digital Asset Recovery by Joining DeRec Alliance

Ripple has recently aligned with Swirlds Labs and the Algorand Foundation as a principal contributor to the DeRec Alliance. This collaborative venture targets the facilitation of digital asset implementation and recovery. The innovation at the heart of this initiative, the decentralized recovery (DeRec) protocol, offers a solution for restoring critical private information, crucial in scenarios where users might lose devices integral to two-factor authentication processes.

Dr. Leemon Baird, the co-founder of Hedera, elaborated on the Alliance’s origins and aspirations. “The DeRec Alliance was conceived as an open-source endeavor aimed at cultivating a methodology and establishing an industry benchmark for a user-friendly, secure, and decentralized asset recovery applicable across all digital wallets,” he remarked. Dr. Baird further encouraged widespread participation across various blockchains and industries to foster the standards and develop the open-source code essential for ensuring safety within the burgeoning Web3 sector.

The initiative first took shape under the stewardship of ecosystem stalwarts Hedera and Algorand. Joining this pioneering duo, Ripple and its subsidiary, XRPL Labs, have been inducted into the Technical Oversight Committee, entrusted with governance roles for a term of two years.

John Wingate, CEO of BankSocial, highlighted the critical issue addressed by the alliance—mitigating the risks associated with the irreversible loss of self-stored digital assets. Echoing this sentiment, Sami Mian, CEO of Blade Labs, pointed out the barriers such risks create for user engagement with cryptocurrencies. “Digital asset self-custody could radically transform the landscape of asset ownership and value exchange. However, the prevalent poor user experiences and the looming threat of permanent losses pose significant challenges. Through pioneering integration with the DeRec protocol and our concerted efforts within the Alliance, we are committed to advancing this innovation to a broader audience,” Mian stated.

In a strategic expansion of its service offerings, Ripple has announced the forthcoming launch of its stablecoin on the XRP Ledger and Ethereum blockchains, slated for the end of 2024. This new stablecoin will be fully backed by dollar deposits, short-term Treasury securities, and other financial assets, with the assurance of audits conducted by an independent third-party accounting firm.

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