In a daring bid to reshape the crypto industry’s security architecture, Ledger, the leading hardware wallet provider, has unveiled an innovative feature that has ignited a firestorm of controversy within the crypto community. The Paris-based company’s new service, Ledger Recover, designed to secure users’ seed phrases, has been met with a wave of skepticism and critique, putting Ledger’s commitment to privacy and security under scrutiny. Exciting update, Ledger has a new product, Ledger Recover, that’s launching soon: 🧵Here’s what Ledger Recover is and what it isn’t, explained by & in the thread below.
The concept behind Ledger Recover stems from the fundamental challenge of balancing user experience with stringent security protocols. The crypto industry has long been grappling with the conundrum of how to make its offerings user-friendly without compromising the technology’s core ideals. Ledger’s solution, according to CEO Pascal Gauthier, is Ledger Recover, a subscription-based service designed to secure user seed phrases against loss.
The mechanism involves encrypting and dividing a user’s private key into three fragments, each stored by separate companies, including Ledger, Coincover, and an undisclosed backup service provider. Gauthier defended the initiative during a recent Twitter Space session, stating that the service aligns with the demands of future customers and will pave the way for millions to onboard to crypto. However, the crypto community’s reaction to the service has been less enthusiastic.
Critics argue that Ledger Recover undermines the core purpose of hardware wallets to offer the highest level of security for crypto assets. The crux of the backlash revolves around the requirement for Ledger Recover customers to provide government-issued ID to access the service, a step some argue contravenes crypto’s foundational privacy principles. High-profile critics have publicly denounced the new feature, including Bitcoin investor Alistair Milne and Mudit Gupta, the Chief Information Security Officer at Polygon Labs.
Their sentiments echoed the concerns of many within the community, who questioned why users would entrust their private keys and personal information to Ledger, particularly in light of the company’s security breach in 2020. Ledger just released a new update for Nano X that allows social recovery of your seed phrase. It encrypts your seed in 3 shards and sends it to different entities that can then reconstruct the seed for you post ID verification.
It’s a horrendous idea, DON’T enable this feature. Despite the opposition, Ledger’s leadership remains resolute in defending its security practices. Co-founder Nicolas Bacca emphasized that the new recovery service, which is entirely optional, doesn’t represent any form of a “backdoor.
” Additionally, Ian Rogers, Ledger’s Chief Experience Officer, reminded users that they have a choice and should be aware of who they entrust their information to. Ledger’s CEO has thrown the gauntlet to critics as the backlash continues. Gauthier challenged detractors anticipating another security breach within the next 12 months, citing the company’s successful operation of 6 million devices without compromise or backdoor installations.
While Ledger Recover represents an innovative attempt to bridge the gap between user experience and security, its launch’s controversy highlights the persistent tension between ideology and practicality in the crypto industry. As Ledger navigates this tumultuous terrain, the outcome will undoubtedly be a significant case study for crypto businesses worldwide. .
From: coinfea
URL: https://coinfea.com/ledgers-new-recovery-service-sparks-controversy-security-innovation-or-privacy-breach/
