What is Ledger Recover?
Ledger’s latest firmware update includes the Ledger Recover service, a subscription-based feature costing $9.99 monthly. This service splits a user’s seed phrase into three encrypted pieces, known as shards, and dispatches them to third-party companies. When combined and decrypted, these shards can reconstruct the lost seed phrase, serving as a backup for the user’s private keys. The catch? Users must provide identification in the form of a passport or national identity card to avail the service.
The Controversy Surrounding Ledger Recover
The launch of Ledger Recover has elicited a mixed reaction from the crypto community. Some users expressed concern, seeing potential risks to security. Their unease is not unfounded, especially considering Ledger’s past data leak in 2020, which exposed the personal details of nearly 300,000 customers.
Critics argue that if another breach were to occur, it could potentially allow hackers to access Ledger Recover and misuse the service to “recover” the seed phrase. Furthermore, critics fear that the service could expose users to identity theft, as it requires users to tie their seed phrases to their passports or national IDs.
Defending the Ledger Recover
Despite the backlash, Ledger’s representatives have defended their new service. They argue that the decryption of the shards can only happen on the Ledger device after the user has proven their identity. Furthermore, Ledger assures its users that the service is opt-in only, meaning the traditional way of using Ledger remains unchanged for those who do not subscribe to Ledger Recover.
Exploring Alternatives: Social Recovery
While the Ledger Recover service has its critics, the concept of seed phrase recovery isn’t entirely flawed. In fact, social recovery systems have been praised as a secure and user-friendly option. Social recovery allows users to delegate a number of trusted “guardians” that can approve the recovery of a wallet. The key difference is the control remains with the user, minimizing the potential security risk associated with providing passport and identity card details.
What is Ledger Recover?
Ledger Recover is a new service that provides a backup for the user’s seed phrase by splitting it into three encrypted shards and sending them to third parties.
Why is Ledger Recover controversial?
Some users are worried about the potential security risks associated with tying their seed phrases to their passports or national IDs, especially considering Ledger’s past data leak.
What alternatives exist to Ledger Recover?
Social recovery systems present a viable alternative, allowing users to delegate recovery approval to trusted “guardians.”