In a previous post, we discussed cold wallet options, one being Ledger. Well, Ledger has recently announced the release of a new service called “Ledger Recover”. It has caused quite a stir and we will discuss everything you need to know about this service.
Firstly, it is optional. You can opt into this service. This service (should you opt-in) will allow Ledger to store your seed phrase and allow you to retrieve it should you lose it.
Ledger is a hardware and cold wallet maker that provides customers with an option to store, buy, and trade crypto while keeping it in their possession.
What is Ledger Recover?
|— Ledger Recover is a backup service for your secret recovery phrase that makes interacting with crypto more seamless and accessible.|
— This service offers crypto users without a safe place or the knowledge to store their secret recovery phrase the option of self-custody.
— With Ledger Recover, you can recover your crypto account using an ID on a new or existing Ledger Device.
A common critique is that Ledger has created a back door. Opponents say that the product isn’t compatible with the concept of a hardware wallet, which promises to protect private keys from prying eyes. Using trusted custodians is nothing new for crypto – in fact, everyone who keeps their coins on an exchange is trusting the exchange like it’s a bank. But hardware wallets embody the “be your own bank” ethos of Bitcoin: that you don’t have to trust an intermediary to keep your money safe. This new feature goes against that, according to critics.
Ledger argues that this feature will make crypto more accessible to novices and that it will also take some of the responsibility off new crypto traders by securing their key phrase for them.
Ledger will be hosting a town hall later today to discuss the discourse surrounding their new offering.