MultiversX joins the ecosystem-wide initiative founded by Algorand Foundation, Cardano Developer Input | Output, Hashgraph, Ripple and XRPL Labs to offer improved security and safety to EGLD network users while advancing the efficacy and adoption of the open DeRec Protocol.
08 July 2025 – The Decentralized Recovery (“DeRec”) Alliance, a community-driven organization focused on the creation and maintenance of an open industry-standard protocol that enables the decentralized protection and recovery of blockchain credentials and other important secrets, today announced that MultiversX, the first blockchain to introduce an on-chain 2FA mechanism protecting user wallets at the protocol level, has joined as an alliance member.
“We’re proud to work alongside Algorand, Cardano, Hedera, and Ripple to define and promote a decentralized, quantum-resistant recovery standard through the DeRec Protocol,” said Lucian Mincu, co-founder and CIO of MultiversX. “At MultiversX, we’ve built one of the world’s most scalable blockchain architectures—fully open source—and we’re excited to keep building critical digital infrastructure that is open, transparent, and community-owned alongside the DeRec Alliance.”
Unlike centralized web services and SaaS solutions whose operators offer a safety net in the event that users lose their login credentials, public blockchains such as Bitcoin and Ethereum are decentralized to the point that there’s no central help desk or self-service process to help those users regain account access should they lose track of their credentials. Unfortunately, once users lose the credentials to their public blockchain accounts, they also lose access to any assets associated with those accounts. It is estimated that billions of dollars are currently trapped in blockchain accounts that are inaccessible to their owners due to credential loss or mishandling. As long as this gap persists, many users and organizations are too easily dissuaded from adopting public distributed ledger technology (DLT).
With the goal of lowering that barrier to adoption while at the same time offering an industry standard means for web3 users to protect their blockchain credentials and any other important secrets from irrecoverable loss, Hedera co-founder Dr. Leemon Baird, along with leaders from the Algorand, Cardano, Hedera, and Ripple ecosystems founded the 501(c)(3) not-for-profit DeRec Alliance and its namesake open protocol to simplify, secure, and decentralize digital asset recovery. The open DeRec Protocol makes it possible for any application or website to enable recovery of various types of data, including private keys for any blockchain or ledger, secret recovery phrases (aka “seed phrases”), passwords, photos, notes, identity credentials, and cryptographic keys.
“It’s clear that MutiversX takes the same view as the DeRec Alliance; that security and safety are top priorities for end-users.” said Dr. Baird. “We’re very much looking forward to how MultiversX’s innovative and security-first thinking helps to shape the future of the DeRec Protocol.”
“If we want self-custody to scale, it needs to be both bulletproof and effortless,” said Beniamin Mincu, co-founder of MultiversX. “The DeRec Protocol hits that rare balance—an open standard backed by some of the biggest players in crypto, aligned with our values, and built for the real world. We’re excited to contribute and help shape a safer future for digital ownership.”
About The Decentralized Recovery Protocol
The open-source Decentralized Recovery (DeRec) Protocol is a standard royalty-free approach to secret management, based on sharing of secrets among a set of helpers (e.g., friends or businesses), none of whom get a complete copy of the secret but all of whom can play a role in recovering it should it be forgotten or misplaced. For more information about how the DeRec Protocol works, please read What is Decentralized Recovery? and Understanding the Types of Secrets that can be Protected with the DeRec Protocol.
About The DeRec Alliance
The DeRec Alliance is a group of forward-thinking companies from across the web2 and web3 ecosystems that are committed to making the process of securing and recovering digital assets, accounts, and other secrets as simple as existing web2 experiences. Leveraging a new open source standard, these organizations are working together to help their users and the broader world realize the promise of web3, without the complexity.
Organizations interested in joining the DeRec Alliance, or in adopting technology that leverages the open DeRec Protocol can visit https://derecalliance.org/.
About MultiversX
MultiversX, the EGLD network, is a distributed blockchain network for next-gen applications. Decentralized via 3,000+ nodes, scalable through sharding, fast, secure, and green.
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