One of the pressing challenges in cryptocurrency and Web3 is asset recovery, especially when dealing with digital assets built on the Blockchain. The fact that these digital assets are created in a decentralized way has posed difficulty in recovery.

Seeing this pressing need, Ripple and XRPL Lab joined Swirldslabs and AlgoFoundation as Founding Members of the Decentralized Recovery Alliance, DEREC, with two-year seats on the Technical Oversight Committee providing input on governance and core Alliance policies. This initiative was first proposed and established by Leemon Baird, co-founder of Hedera, DeRec Alliance, with Hedera and Algorand as the pioneer partners.

The partnership is aimed at introducing a standardized approach to digital asset recovery and tackle the complexity often associated with securing and retrieving online assets, accounts, and passwords in the Web3 space. The team is thus strengthened with the entry of Ripple and XRPL Lab.

The coalition has already attracted new members which include; BankSocial, Blade Labs, Acoer, The Building Blocks, Casper Association, Constellation Network, The Hashgraph Association, The HBAR Foundation, and Revive Labs. Jointly, they will further improve the alliance’s goals.

With more concern on nontechy users, the Alliance will ensure not just the existence of a solution to asset recovery but that it reaches a wider audience.

“As we work towards mass retail adoption, it's becoming increasingly clear that advanced yet user-friendly solutions for key recovery are essential. ⁤⁤The DeRec Alliance comes at a critical moment, uniting experts to enhance interoperability and simplify the user experience without compromising security," said XRP Labs Founder and CEO Wietse Wind in the release.

But how will this team pull off this without compromising security ?

The protocol is going to establish a system of secret management among designated entities. The entities will recover secrets without sharing information about the secret itself.

This will ensure that the user's security and privacy is both maintained. The helpers will be able to assist with details on the asset recovery without knowing the detail itself.

It is pretty obvious that zero knowledge proof will be deployed here. Web3 enthusiasts are anxiously waiting for the final product to be out for public usage. Indeed, if this Alliance is able to provide this solution while maintaining user's privacy and security, it will be a game changer. It will also help onboard new people into web3, especially those that have been kept away by fear of asset lost.