Ledger has lost the trust of users. The company dedicated to cold wallets has decided to release an update that is directly at odds with its original philosophy. A strategy change that sparked much criticism and showed how difficult it is to combine security with economic benefits.
The new feature is a subscription service called “Recovery”. to use it requires registration and identification. This contradicts Ledger’s initial idea of having an encrypted device where you personally store cryptocurrencies.
That’s not what Ledger promised
In other words, we’ve moved from a company focused on delivering hardware for which the user is responsible for security, to betting on a paid software system where the trust falls into the hands of the company’s servers.
This It didn’t take long for the reviews to arrive.. Users expressed themselves by stating what they have on social networks.broken trust“, One “terrible idea” and how dangerous this system can be.
Some even point to the possible presence of a secret door in this backup system that could compromise their system. It’s partly an idea that comes from some security incidents Ledger has had in the past.
Ledger’s response didn’t take long, either. CTO Charles Guillemet, announced HE “no back door so no one, us, the seller, not even a very skilled hacker can access it.”
“Ledger Recovery is an optional subscription For users who want to make a backup of hidden recovery phrase. You don’t have to use it, and so if you bought a notebook, you can continue to manage your recovery phrase yourself.” specification the company in a statement.
Someone offers What is Ledger Recovery? should be a completely separate function from walletsinstead of updating the existing Ledger Nano X.
Like remember david schwartzRipple CTO, Ledger’s invention The goal was to store private keys in a security chip with technology similar to credit cards, and offer the possibility that no software could extract those keys from the chip.
This idea is broken with the new function of Recover. This is an optional update, but its inclusion has warned almost all Ledger users to have a physical device to store cryptocurrencies keys.
Image | Amjith S.
on Xataka | Panic among crypto investors, the rise of cold wallets: how do cold wallets work?
Source: Xataka
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.
