The crypto wallet company Ledger released a new service – Ledger Recover – a retrieval solution amid stiff opposition. Not only are the crypto community members opposing it, but also the Ledger wallet owners. It helps safeguard the seed phrase. In case the user misplaces it, then this subscription service will allow you extra protection. This permits an additional layer of protection for private keys.
Ledger Facing Push Backs for New Update
Crayton Wallet company members are also opposing this service. This service uses a method in which the seed phrase is divided into three encrypted fragments. Each fragment is sent to external entities.
The main concern arises here. Once these entities are combined and decrypted, they can be used to recover the seed phrase. The problem is that the encrypted code is sent to 3 different entities, and the reconstruction of the keys can be initiated.
Security specialists also seem to be concerned.
Chris Dunn, the Bitcoin investor, and podcaster, says that first, they leak the addresses and phone numbers and now provide back doors to seed phrases. It’s time to say goodbye to Ledger. This is in reference to the data leak by Ledger in 2020.
Bitcoin investor and entrepreneur Alistair Milne said that you can use Ledger’s recovery service and provide them with your ID and other personal information. But why bother with the hardware wallet in the first place?
This clarifies that Ledger’s new service weakens the whole point of self-custody via tricky wallets. Those who want to back up their seed phrase recovery or back up their secret recovery service can use this subscription.
The company also describes that without using it, you can manage your recovery phase. This is what the ledger basically does. But, to enhance the protection, the feature of Ledger Recovery is added.
The use of seed phrases and ledger recover
When a person makes a wallet, they are provided a unique set of words, this is called a seed phrase. It acts like a secret wallet recovery key. Users are instructed to write it and hide it somewhere safe.
So, the use of seed phrases is for security. But if a person loses the phrase, there will be no access to recover the funds. And also, if the phrase reaches the wrong hands, it can be misused.
To overcome this problem, Ledger has come up with a new service called Leger Recover which offers a way to secure the seed phrase. It is offered at a cost of $9.99 per month. In this, the private key is encrypted, duplicated, and divided into three fragments.
The crypto wallet company Ledger offers solutions for the infrastructure and security of cryptocurrencies and blockchains. It works for individuals and companies as well. It is one of the most popular hardware crypto wallet providers on the market. The company has reportedly sold 4.5 million wallets and introduced six distinct wallet models.
In April, Ledger launched the Ledger Nano S Plus, which is a special customization for the Non-Fungible Tokens (NFT). It aims to improve the security and enhance good experience for web3 customers who use it daily for trading in NFTs. This development of Ledger, along with Ledger recovery service, will definitely support the security measures.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/17/crypto-community-worries-about-ledger-crypto-wallet-new-service/