Ledger Recover Draws Critics

Popular crypto hardware wallet provider Ledger has announced the upcoming release of its latest product, “Ledger Recover”. Built on the principles of self-custody and security, Ledger aims to provide users with peace of mind by offering a backup solution for their Secret Recovery Phrase (SRP).

The new product, however, has sparked controversy among the crypto community who have expressed concerns over asset security.

The SRP is a crucial component for securing crypto assets, and Ledger ensures that it is generated securely on the user's device, with no access available to the company. With Ledger Recover, users have the option to subscribe to a backup service for their SRP. However, it is important to note that this feature is not enabled automatically through firmware updates, emphasizing user choice and control.

Ledger follows the industry-standard BIP39 protocol for SRP generation on all its devices, ensuring robust security measures. With Ledger Recover, the private key is encrypted and divided into three fragments using Shamir Secret Sharing, all executed on the Secure Element chip within the device. These encrypted fragments are stored separately by three different trusted parties using Hardware Security Modules, guaranteeing enhanced security for the SRP.

To restore their keys, users must request the encrypted fragments from two of the three third-party entities, with the decryption process occurring exclusively on Ledger's Secure Element chip. This additional layer of protection ensures that user assets remain safeguarded, as the decryption keys are never shared with Ledger or any other party.

Despite the clear focus on security and user choice, Ledger Recover has faced criticism from industry experts. Mudit Gupta, Chief Information Security Officer at Polygon Labs, has voiced concerns about potential risks such as sim jacking and identity theft. Gupta has advised users to refrain from enabling the feature, speculating whether it was introduced for financial gain or regulatory compliance purposes.

The reaction from the crypto community and Ledger's user base will undoubtedly shape the future of Ledger Recover. While some may welcome the additional backup option, others are calling on Ledger to roll back the feature. Regardless of the outcome, Ledger reiterates its commitment to self-custody as a fundamental principle, allowing users to decide how they manage their assets.

What is Ledger Wallet: 

Ledger offers users a smart way to secure, buy, exchange, and grow their crypto assets. The platform, trusted by over 4 million customers in the Decentralized Finance (DeFi), offers users a variety of products, including the most popular Ledger Nano X Bluetooth-enabled hardware wallet. 

Through its available products, users can manage their cryptos and NFTs by using the Ledger Live application for maximum security. Hence, combining the Ledger live app with the Ledger Nano X gives users control over their crypto assets. 

For more information about Ledger, visit the following links: 

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