Ledger, a hardware crypto wallet manufacturer, faced backlash when it announced its Ledger Recover program, which allows customers to backup their seed phrases to the cloud and link it to their real-world identity. The crypto community criticized this move, as it seemed to contradict the principles of blockchain security and self-custody of keys. Ledger responded by assuring customers of the program’s safety and opt-in nature. This controversy has sparked a demand for open-source hardware wallets, which could eliminate any potential backdoors. Ledger subsequently accelerated its open-source roadmap. However, the security of open-source hardware wallets is still a topic of debate. While they offer increased compatibility and community involvement, they can also be vulnerable to hackers and scammers. Additionally, the complexity of the hardware wallet supply chain poses challenges for security. The future of hardware wallets may lie in finding a balance between open-source and closed-source approaches, ensuring both security and transparency.
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