• Ledger recently released a new service, Ledger Recover, that provides an additional layer of security for users of their hardware wallet.
• The service has sparked controversy in the crypto community over concerns about the potential for a backdoor.
• Security specialists have raised alarm bells over the risks associated with outsourcing the storage and protection of one’s private keys to external entities.
Ledger Launches Subscription-Based Crypto Security Service
Hardware wallet provider Ledger recently released an update introducing a new service known as Ledger Recover. It promises to offer an additional layer of security to users of their hardware wallets, but it has also sparked significant controversy in the crypto community.
What is Ledger Recover?
Ledger Recover offers users an additional layer of protection for their private keys. This approach involves fragmentation and encrypting of the user’s seed phrase into three distinct parts, which are then dispatched to separate external entities. The fragments are then combined and decrypted to reconstruct the original seed phrase. According to the wallet provider, Ledger Recover is an optional subscription particularly useful for users who want to back up their secret recovery phrase, however users who prefer to manage their recovery phrases themselves can still do so, as the subscription is not mandatory.
Criticism From Crypto Community Members
Despite its benefits, Ledger Recover has faced criticism from crypto community members including security specialists due to its reliance on external entities for storing and protecting private keys. Mudit Gupta, chief information security officer at Polygon Labs was particularly vocal in his opposition to this feature, strongly advising against enabling it due its potential risks.
Are There Benefits To Using Ledger Recover?
Many proponents argue that when applied correctly within a secure environment there could be advantages associated with using this type of service such as increased efficiency when accessing funds or improved privacy features by keeping all secrets off device memory like passphrases used during authentication processes etc., However, overall there seems to be more concern than support regarding this feature in its current form.
In conclusion it seems that while offering more layers of security might sound good on paper there are inherent risks associated with outsourcing key management tasks which need further evaluation before being adopted into mainstream use cases by cryptocurrency holders around the world