Hardware wallet provider Ledger has faced significant backlash from the crypto community over its planned key recovery feature. Following the outcry, the company has decided to delay the release of the controversial service and pledged to open-source the Ledger Recover code before its introduction. This article examines the concerns raised by the community and Ledger’s response to address them.
Contenu
The Controversial Ledger Recover Service
Ledger recently announced its new service called Ledger Recover, which allows users to store encrypted backups of their seed phrases with three custodians. This feature aims to enable users to restore their private keys in case of seed phrase loss or forgetfulness. However, the idea of sharing seed phrases with custodians sparked immediate criticism within the crypto community.
Community Backlash and Concerns
Members of the cryptocurrency community expressed their discontent with Ledger’s key-recovery service. They emphasized the importance of self-custody and raised concerns about the potential risks associated with sharing seed phrases. Critics highlighted the risks of custodian hacks, data leaks from KYC providers, and potential government intervention. Additionally, the lack of open-source code for auditing the proposed custody mechanism raised further doubts about the service’s security.
Ledger’s Response and Commitment to Transparency
In response to the community backlash, Ledger CEO Pascal Gauthier addressed the concerns in a letter to users. He acknowledged the importance of user feedback and announced that Ledger would delay the introduction of the key-recovery feature until the code is open-sourced. Gauthier also committed to accelerating the company’s open sourcing roadmap, starting with core components of the operating system and Ledger Recover.
Is Key Recovery from Ledger important?
Gauthier reiterated the company’s belief that key recovery services play a crucial role in onboarding new crypto users who may find self-custody challenging. While Ledger aims to provide such services, the recent controversy has highlighted the need for transparent and secure solutions that align with the community’s expectations.
Recommended posts
-
WARNING: Ledger can read Private keys – New Controversial Feature? - Is Ledger Putting Profit Over Security and Community Support?
-
What Is A Cold Wallet? And Why Is It Important?
-
Shiba Inu to Reach 1$ soon? This New Upcoming Development Proves it Right -
The Ultimate List of Top 5 Hardware Wallets 2023 to Secure Your Crypto Holdings! - The FALL of Cryptos: Interest wanes and turns to AI?
-
PIVX Releases Roadmap For The Future – What’s To Come?
-
Why is Cardano Price DOWN? Don’t get FOOLED! -
Argent v1 Smart Wallet – 1-Click Comprehensive DeFi On The Go
-
Statement issued by the US SEC and FINRA on Crypto Custody Regulations - Big News: Ripple Price is about to TRIPLE? This News Confirms…
-
PewDiePie incident exposes vulnerabilities in seed phrase printing -
How To Use Ledger Plus MetaMask – Guide To The Safest Crypto Setup -
Ledger Announces New Wallet
-
Cardano Basho: When is the next big Cardano update coming? - Ethereum Improvement Proposal 867 Sparks Fierce Debate
- Ripple is Highly Undervalued – Will XRP price increase soon?
- Shiba Inu Price Prediction: How High can SHIB Price reach by 2030?
-
How to Use a Ledger Nano S Wallet?
You might also like
More from Blockchain
Ethereum NFT Update: What is ERC-6551?
With the ERC-6551 standard, Ethereum has a feature that could revolutionize the NFT world. What is ERC-6551? Will this push …
Crypto Trading 101: Exploring Profitability, Challenges, and Risks in 2023
In this article, we talk about crypto trading, which emerged as a promising avenue for individuals seeking investment opportunities.
The FALL of Cryptos: Interest wanes and turns to AI?
This article sheds light on some of the French cryptocurrency failures, highlighting the need to find companies whose intentions go …
