MultiversX has officially joined the DeRec Alliance, a nonprofit group focused on decentralized recovery solutions for digital assets. The Alliance includes leading blockchain entities such as Hedera, Ripple, Cardano’s Input Output, Algorand Foundation, Constellation, and XRPL Labs.
Together, these members support the development of the DeRec Protocol—a shared, open-source framework for recovering private keys, seed phrases, and other critical data. The protocol aims to bring secure, decentralized recovery to wallets, applications, and identity systems across Web3.
MultiversX brings unique technical contributions to the group, including the first protocol-level two-factor authentication (2FA) system on a public blockchain. This feature gives users an additional layer of wallet security without relying on third parties.
By joining the Alliance, MultiversX strengthens its long-term vision of user-controlled security while contributing to a standard that can benefit the broader ecosystem. The collaboration reflects a shared goal: making digital ownership safer, easier to manage, and more accessible for everyone.
We're proud to join @DeRecAlliance, an initiative spearheaded by some of the most prominent U.S.-based blockchains—@Cardano, @Ripple, @Algorand, and @hedera—to define and promote a decentralized, open-source, and quantum-resistant recovery standard for digital secrets. pic.twitter.com/eVr5kXAdKg
— Multiversᕽ (@MultiversX) July 8, 2025
What Is the DeRec Protocol?
The Decentralized Recovery Protocol, or DeRec, offers an open-source, royalty-free framework for managing secrets like private keys, seed phrases, identity credentials, and other sensitive data.
Instead of relying on a single device or written backup, DeRec enables users to split a secret into secure fragments and distribute them among a group of trusted helpers—such as friends, apps, or service providers. No one helper holds enough information to reconstruct the original secret. However, when the user initiates recovery, a majority of these helpers can work together to safely reassemble the data.
The protocol includes automated health checks to confirm each helper’s availability. If a helper goes offline, the system can proactively rotate shares to new participants, ensuring recovery remains possible over time. Importantly, DeRec is blockchain-agnostic, allowing it to be integrated into any Web3 or Web2 environment.
Who MultiversX Is Joining: Members of the DeRec Alliance
The DeRec Alliance includes leading Web3 networks and organizations focused on improving digital recovery. Each member supports a shared goal: to make recovery simple, secure, and decentralized across blockchain ecosystems.
The group brings together diverse technical architectures and teams. These members contribute practical insights and capabilities that help shape the design and direction of the DeRec Protocol.
Here are the key members that MultiversX is joining:
- Hedera (Hashgraph) – Co-founded by Dr. Leemon Baird, Hedera is a proof-of-stake network focusing on regulated industries, low energy use, and public infrastructure designed for long-term utility.
- Ripple – Ripple supports the XRP Ledger and RLUSD stablecoin. It brings experience building compliant blockchain systems for financial institutions across global markets.
- Algorand Foundation – The foundation supports development and adoption of the Algorand blockchain. It focuses on open-source growth, low fees, and environmentally efficient operations.
- Input Output Global (IOG) – IOG is the research and engineering company behind Cardano. It contributes formal methods, smart contract infrastructure, and cross-chain governance tools.
- XRPL Labs – As a key developer in the XRP Ledger and Xahau ecosystems, XRPL Labs builds wallet tools, key management solutions, and user-focused platform features.
- Constellation Network – Constellation is a Layer-0 protocol using a directed acyclic graph (DAG) architecture. It supports real-time data processing, modular infrastructure, and secure integration with existing systems.
- HashPack – HashPack is the leading wallet for the Hedera ecosystem. It offers non-custodial storage, dApp browsing, NFT support, and built-in recovery options. Designed for accessibility, HashPack helps onboard users with a strong focus on security, usability, and ecosystem engagement.
With the addition of MultiversX, the DeRec Alliance gains another network focused on scalable architecture, mobile-first usability, and native on-chain security. Each member brings strengths that help improve the robustness, flexibility, and usability of the DeRec Protocol. Their collaboration supports a shared goal: enabling seamless, decentralized recovery for digital assets across all corners of the Web3 ecosystem.
It’s clear that MutiversX takes the same view as the DeRec Alliance; that security and safety
are top priorities for end-users.
Why MultiversX Is a Strong Fit
MultiversX has made secure, decentralized infrastructure a top priority. Its Layer-1 network combines adaptive state sharding with secure proof of stake (SPoS) to deliver high throughput and fast finality. In 2023, it introduced the first on-chain 2FA system built directly into the protocol—offering an added layer of protection without sacrificing control or privacy.
Joining the DeRec Alliance builds on this foundation. It allows the MultiversX team to contribute to a shared protocol that aligns with their values around usability and user ownership. It also unlocks opportunities for DeRec integrations across the EGLD ecosystem.
According to Lucian Mincu, MultiversX’s CIO and co-founder, the project is committed to building infrastructure that is open, secure, and community-owned. That vision fits well within the DeRec Alliance’s mission to reduce risk without reintroducing central points of failure.
On-chain 2FA security layer? Let’s save the jargon for the builders.
— Multiversᕽ (@MultiversX) May 1, 2025
Here’s just the punchline: not a single cent has ever been stolen from a guarded MultiversX account. Zero. Nada.
Game over for crypto theft. pic.twitter.com/rIgValr636
Implications for Users and Developers
For users on the EGLD network, the partnership offers a clear benefit: access to a decentralized recovery system that reduces the fear of permanent asset loss. Wallet recovery using DeRec can eliminate the need to store paper seed phrases or rely on centralized custodians.
For developers building on MultiversX, the protocol provides a secure recovery layer that can be integrated into apps and services. Whether managing identity credentials, encrypted files, or on-chain data, teams will soon have the tools to offer recovery options without compromising decentralization.
For the broader industry, the announcement signals continued momentum for open recovery standards. It also highlights a shift away from platform-specific solutions toward cross-chain tools designed to benefit all users, regardless of which network they use.
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.
Beniamin Mincu – co-founder of MultiversX
A Step Toward Secure, Scalable Self-Custody
The addition of MultiversX to the DeRec Alliance reinforces a shared understanding across the blockchain space: secure digital ownership must be both safe and accessible. Recovery should not be a source of fear or friction.
By contributing to an open recovery standard, MultiversX strengthens its ecosystem while supporting broader adoption of Web3 technologies. It joins a community of builders working to make decentralized systems more resilient, user-friendly, and sustainable.
As the DeRec Protocol continues to evolve, MultiversX’s presence will help shape how recovery is integrated into next-generation wallets, identity frameworks, and developer tools.
For more information, visit https://derecalliance.org or https://multiversx.com.
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