Today I will closely examine some strong opinions about Ledger’s new feature,
Ledger Recover. I will strip down the complexities, address the panic, and
ultimately ask: can we trust Ledger Recover?
1. What is Ledger Recover?
Ledger Recover is a new feature introduced by Ledger. Ledger is a well-
established player in crypto security. They provide excellent solutions for
storing crypto on their hardware wallet. The Ledger Recover feature allows
users to recover their lost seed phrases. You know the words you must write
down when creating a new crypto wallet.
They split the user’s secret keys into three parts with Ledger Recover. They
encrypt those parts and send them to three separate external entities. In case
of a lost seed phrase, two of the three parties can send their fragments back
to the Ledger device, enabling the reassembly of the private key.
It is a backup for the backup seed phrases of your wallet.
2. Why the controversy?
Ledger Recover caused a lot of worry in the world of cryptocurrency. People
were scared about the risk of their private keys leaving their devices, which
could put their money at the risk of hackers stealing it.
They were also worried that the government could force Ledger to give them access to their seed phrases. To top it all off, Ledger didn’t explain the new feature well, which made people even more worried.
3. Ledger’s Response
Ledger’s co-founder and other representatives attempted to reassure users on Twitter that the security of Ledger devices was not compromised and that Ledger Recover was optional.
They stressed that using the recover feature required users to sign a transaction, and without it, Ledger cannot access your seed phrase. They also highlighted that users need to place a certain amount of trust in Ledger to use their product.
4. What about the governments?
Pascal Gauthier, Ledger’s CEO, did raise a crucial point: Ledger could be
legally compelled to provide users’ seed phrases if subpoenaed by a
government. Although this might be a concern for some, he explained that
Ledger Recover is an optional feature, and users can choose to keep their seed
phrases private if they feel uncomfortable.
So there is technically a possibility that governments can access your wallet
by using this feature.
5. Alternative ways to protect your private keys
Instead of relying on a service like Ledger Recover, there are other ways to
ensure the safety of your private keys.
- You can create a secure backup of your keys
- Store your keys in a secret location in your house
- Store a backup at the house of a trusted person, such as a family member
- Buy a safe and store it there
What I Hope for You
In the Twitter drama of Ledger Recover, my verdict leans heavily towards
keeping control of your keys. It might seem easier to hand over the
responsibility to someone else, but remember, with great crypto comes great
responsibility. Rather than splurging on a recovery service, consider
investing that money into securing your private keys.
Find a good hiding spot in your house (behind that dusty photo frame, maybe?), entrust a copy to someone you trust (like your Mom – unless she’s prone to spring cleaning), or go full-on secret agent, get a safe and store it in a bunker.
I hope you stand firm in the shifting sands of the crypto world, holding your
keys close. After all, the beauty of crypto lies in its promise of decentralization and self-custody. Keep these principles close to your heart (or your wallet), and you’ll navigate the wild waves of the crypto sea with grace.
Stay safe, and best of luck.
Daniel Donselaar
