Expert Insight: Understanding the Controversial Ledger Recover
Ledger, the hardware wallet company, recently introduced a new service called Ledger Recover, sparking controversy within the crypto community. The service essentially allows you to share three seed fragments before it is created on your device, sending these fragments to three providers, including Ledger itself, for future recovery purposes. The process utilizes an industry standard algorithm called Shamir’s Secret Sharing Scheme to split the seed into three parts, requiring two to reconstruct it if necessary. However, there are several concerns surrounding this service, including:
- Automatic firmware update including the recovery feature
- Potential governmental coercion of recovery providers
- Risks with the recovery process and authentication
Balancing Security and Convenience
While Ledger Recover aims to provide a user-friendly backup solution for crypto users, it raises questions about the trade-off between security and convenience. The service may benefit operational wallets and users with lower risk thresholds, but for those prioritizing maximum security and control, alternative solutions like Shamir Secret Sharing implemented by hardware wallet companies or personalized inheritance planning services like Casa may be more suitable.
Source: Youtube
By
By
By
By
By