Crypto Hardware Wallet Manufacturer Ledger Introduces New Feature for Seed Phrase Backup
Crypto hardware wallet manufacturer Ledger has launched a new feature called Ledger Recover, which allows users to back up their recovery seed phrases. This optional subscription-based service is provided by blockchain protection firm Coincover. Currently available on the Ledger Nano X device, the service is expected to expand to other Ledger devices in the near future.
How Ledger Recover Works
With Ledger Recover, users’ private keys are encrypted and fragmented into three pieces. These fragments are securely distributed to three independent companies: Ledger, Coincover, and EscrowTech. This ensures that even if one of these companies is compromised, the user’s private keys remain secure.
Subscription and Identity Verification
To access the Ledger Recover feature, users can subscribe for free in the first month and then pay €9.99 per month using Visa or Mastercard. In addition, customers need to provide a valid ID document and record a selfie to verify their identities. Ledger emphasizes that this ID verification process is less complex and collects less information compared to traditional Know Your Customer (KYC) procedures.
Pushback from the Crypto Community
The launch of Ledger Recover has faced criticism from users and the wider crypto community. Some users expressed concerns about the security of their private keys and accused Ledger of creating a potential backdoor. Due to these concerns, Ledger initially postponed the launch of Ledger Recover. Even after its release, many commenters on social media platforms expressed dissatisfaction with the feature and advised against subscribing to it.
Hot Take: Mixed Response to Ledger’s Recovery Service
Ledger’s introduction of the Ledger Recover feature has received mixed feedback from the crypto community. While some users appreciate the added security and convenience it offers, others have raised concerns about the potential risks and vulnerabilities associated with the service. Ledger will need to address these concerns and continue to prioritize the security of its users’ funds to regain trust and confidence in its products.
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