Hardware Wallet Maker Ledger Launches “Recover” Seed Phrase Backup Service
Hardware wallet manufacturer Ledger has officially launched its “Recover” service, which provides backup for users’ crypto wallet recovery seed phrases. This service allows users to recover access to their crypto assets if they lose their original seed phrase.
The Controversy Surrounding Recover
Recover involves encrypting, duplicating, and dividing users’ private keys into three pieces held by Ledger, Coincover (a crypto security firm), and an independent backup provider. However, this decentralization of the backup has faced criticism from some crypto users who are concerned about privacy and security implications.
Critics’ Concerns
Critics argue that Ledger is compromising its commitment to privacy and security by asking users to pay for a service that potentially makes their private keys more vulnerable. They believe that offloading seed phrase backups to a centralized service introduces new potential vulnerabilities.
Ledger’s Defense
Ledger’s CEO, Pascal Gauthier, defends the Recover service as an optional way to prevent users from losing access to their crypto assets if they forget their seed phrase. He emphasizes that many people have lost their assets due to this reason, and the service aims to address that issue.
Service Details
The Recover service is currently available for Ledger’s Nano X wallet and will integrate with other Ledger wallets in the future. Users need to verify their identity, but Ledger claims that this process is less invasive than typical Know Your Customer (KYC) checks.
The subscription-based service costs $9.99 per month, with a 9-month reactivation period for users who stop paying. If users fail to reactivate within this period, a $50 fee is required.
Hot Take: The Security vs. Usability Debate
Ledger’s launch of the Recover service has sparked a debate over the appropriate tradeoffs between security and usability in the crypto space. While Ledger argues that the service meets customer demand for resilience against lost keys, critics believe that the potential vulnerabilities introduced outweigh the convenience of offloading seed phrase backups to a centralized service.
This ongoing debate becomes particularly relevant as more novice crypto users enter the market and seek user-friendly solutions while also prioritizing security.
Sources:
- https://www.ledger.com/recover
- https://blockonomi.com/hardware-wallet-maker-ledger-launches-controversial-recover-seed-phrase-backup-service/
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