Ledger CEO Backs Key Recovery Service Amid Self-Custody Controversy
Pascal Gauthier, the CEO of Ledger, has defended the company’s new security feature Ledger Recover, which facilitates the recovery of users’ secret phrases. This feature aims to simplify the process of self-custody for cryptocurrency users.
“Ledger Recover is an optional service designed to make secure self-custody easier without compromising on security,” Gauthier said. He believes this feature could potentially attract millions of new users to the crypto industry by making secure self-custody more accessible.
For a monthly fee of $9.99, Ledger Recover allows users to associate their crypto wallets with their passports or ID cards. If users misplace the secret phrase, this connection offers an alternative way for them to “recover” it. The service was announced earlier this month and is currently available to owners of Ledger’s Nano X wallet.
The mechanism of the feature, as described on Ledger’s website, involves encrypting, duplicating, and dividing a pre-BIP39 version of the user’s private key into three parts. A separate entity – Coincover, Ledger, or an independent backup service provider – secures each fragment. Each of these encrypted fragments is ineffectual on its own. Users need to receive fragments from two out of the three parties to access their wallet on their Ledger device. Then, they reassemble these fragments to create the private key.
However, the introduction of the Ledger Recover service has been met with considerable criticism from the crypto community, raising issues regarding security and privacy. One Twitter user, @sethforprivacy, pointed out that the need to link one’s identity to Ledger creates another potential point of vulnerability for data leaks, hacks, and government censorship or surveillance.
Leger to Open-Source its Services
In response to this backlash, Ledger announced last week that the release of its Recover service would be postponed. In an open letter, Gauthier attributed this decision to an “unintentional communication mistake” which may have obstructed consumers’ accurate understanding of the Recover service.
Ledger’s chief technology officer, Charles Guillemet, recently made an announcement on Twitter. He declared that Ledger aims to expedite its open-sourcing roadmap to enhance the verifiability of all its operations. Guillemet underscored that many of Ledger’s products are already open-source. He also shared that they have jointly developed over 150 open-source applications with various developers.
Ledger has plans to further their open-source strategy. They intend to open source the white paper of the Ledger Recover protocol. This will permit cryptography and security experts to thoroughly review the protocol. It will also allow developers to construct their own shard backup providers. Ledger’s CTO, Guillemet, has announced plans to open-source the firmware that enables the Ledger Recover feature. He asserts that completing this step is essential before making the feature available to the public.
- Ledger’s new cryptocurrency hardware wallet, Ledger Stax, features a curved EInk touchscreen, personalizable features, and a first-of-kind design. It is also designed in partnership with the creator of the original iPod, Tony Fadell.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
