In the face of growing criticism from the cryptocurrency community, Ledgerthe prestigious hardware wallet provider, has chosen to postpone the release of its key recovery function, Ledger Recover. The move marks a significant shift in strategy for the company as it responds to a wave of public outrage.
I want to address the feedback over Ledger Recover, the way it was communicated, and share our path forward. Read my letter and join our town hall with our leadership team to learn more.
https://t.co/2hlPrMwzaN pic.twitter.com/juVBOpWeeG
—Pascal Gauthier @Ledger (@_pgauthier) May 23, 2023
Last week, Ledger had to unveil, following a leak and in a rush, plans for a service named ‘Ledger Recover‘, designed to allow users to store encrypted backups of their seed sentence with a trio of guards. This would allow users to Ledger to restore their private keys even in the case of forgotten or lost seed phrases. However, the launch of the feature Ledger Recover has been put on holdas announced by the CEO of Ledger, Pascal Gauthier, in an open letter to users. The move followed a wave of criticism over the proposal to share seed phrases, a move that would directly contradict Ledger’s previous position of keeping private keys exclusively on devices.
Cybersecurity Concerns: Users Disagree With Ledger Recover
Community reaction crypto to the service offered Ledger Recover was quick and vocal, with widespread concerns expressed over potential security risks. Critics questioned the wisdom of sharing the seed phrase, pointing to possible vulnerabilities such as data leaks, gatekeeper hacks, and law enforcement taking control of Ledger user data.
Additionally, the crypto community took issue with the fact that Ledger’s code for the function Recover was not open-source, thus eliminating the possibility of external audits to ensure the security of the proposed custody mechanism. Ledger, unlike some competitors, does not release all of its code, preferring to have its products tested by a select team of security researchers.
Ledger’s open-sourcing roadmap
In response to the commotion, Pascal Gauthier acknowledged the error in its letter to users. He said Ledger would accelerate its open-sourcing roadmap, starting with key operating system components, and would only release Ledger Recover only after this work is completed.
Additionally, Gauthier highlighted the need for key recovery services to accommodate a new wave of crypto users. He pointed out that a significant proportion of current users do not possess their private keys or compromise the security of their private keys due to less secure self-custody methods or the difficulty to store and secure their seed phrase.
In the interests of transparency and ongoing dialogue, Ledger has scheduled a TwitterSpace to discuss this controversial issue further.
This scenario serves as a poignant reminder of the delicate balance between user safety and usability in the complex world of cryptocurrency or each new piece of information can quickly be very misinterpreted by an entire community.
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