Crypto wallet manufacturer Ledger has officially introduced "Recover," a feature aimed at helping users recover their private keys. Despite its promise of a safety net, the feature has met skepticism and disapproval from a section of the crypto community.
The feature uses encryption, duplication and splitting of users' private keys into three parts, shared across Ledger, crypto security firm Coincover, and an independent backup service provider.
Traditionally, it's recommended to store private keys offline as a handwritten note, safeguarding them from digital theft. Ledger's Recover deviates by digitalizing this critical information.
Critics argue that this enlarges the attack surface for hackers, notwithstanding the encryption and splitting measures.
Unlike comparatively simpler passwords, seed phrases comprise 12 or 24 words in a specific order; these phrases are crucial for accessing wallets or importing them to wallet apps.
Once lost, the wallet and its contents are irretrievable. Ledger's Recover, however, appears to tip the balance towards convenience, albeit at a potential cost to security.
Many users have voiced concerns that this feature undermines the core principle of crypto—privacy.
The requirement for Know-Your-Customer (KYC) compliance further disenchants users who value anonymity. Despite the backlash, Ledger CEO Pascal Gauthier defended the new service in a post on X, highlighting its demand among users fearful of losing their digital assets.
"Let's be clear: too many people have lost their digital assets because they've lost their Secret Recovery Phrase. This risk stops people from using crypto, and certainly from using self-custody," Gauthier wrote. It's noteworthy that Recover is optional and requires a fee, so it doesn't affect users who prefer the traditional method of private key storage.
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Vlad's love for technology and writing created rich soil for his interest in cybersecurity to sprout into a full-on passion. Before becoming a Security Analyst, he covered tech and security topics.
View all postsNovember 14, 2024
September 06, 2024