Given the Bybit hack case and the recent largest defi protocol on SUI, if you are a holder of $ALGO, you must read this to secure your assets when unforeseen events occur.
You need to know that on the Algorand blockchain, there are several unique features that are not commonly found in many other blockchains, especially related to the management and control of Algorand Standard Assets (ASA).
The three main features are: Freeze, Clawback, and Rekeying.
Freeze Account
This feature allows accounts/wallets with "freeze" rights to temporarily disable the use of an asset by a specific account/wallet. When an asset is frozen, the asset owner cannot transfer or use it until it is unfrozen.
Example: If the $IDR stablecoin issuer on Algorand activates this feature, when a hack occurs and the issuer activates this feature, the hacker cannot send/receive $IDR.
Clawback Account
This feature allows accounts with "clawback" rights to move assets from another account/wallet to a different address.
Example: If the $IDR stablecoin issuer on Algorand activates this feature, when a hack occurs and the issuer activates this feature, the issuer can reclaim $IDR from the hacker's wallet.
Now, if you purchase a certain ASA, and two or one of these features are activated, you must be cautious and ask the developer what the purpose of activating this feature is.
Furthermore, to maintain the principle of decentralization, the two features above can only be applied at the application level, not at the protocol/consensus level. This means that consensus nodes do not have the power to perform the above two capabilities - this is thanks to VRF.
Rekeying Account
Rekeying allows users to change their private key without changing their public address. This is useful when a user's wallet is compromised by a bot/virus or when hacking occurs at the protocol level.
Example: When a hack occurs on the wallet you are using, instead of moving assets 1/1 (which takes a lot of time), you can perform rekeying.
Stay safe! NOT YOUR KEY NOT YOUR MONEY, but don't forget that the responsibility lies entirely with you.