ZoneBitcoin EditorialLedger has announced a new service that is currently setting the cryptosphere on fire. The new service “Ledger Recover” consists of recovering access to your wallet without a seed phrase.
This service, still poorly understood by the majority of users, raises essential issues for the sector. Some blame the company for opening breaches for pirates while others are outraged by the communication deemed "disastrous" on the subject.
We take a look back at the new Ledger Recover service to see if there is really cause for concern and to understand why it has sparked such a divisive debate within the community.
What is the “Ledger Recover” service?
First of all, you need to understand what a speed phrase is. The speed phrase is a list of words of generally 12 words (or 24 words) which contain all the information to recover your wallet (in the event of loss or theft).
However, preserving this list of words can be difficult for some people. Most people write it down on a protected piece of paper or on a USB stick or other secure storage device. One popular option is to use metal plates on which the words can be "engraved".
The new feature of the Ledger Recover service consists of dividing the seed phrase into 3 numerical parts which can only be unlocked once identity verification has been carried out. This will have been configured when creating the wallet.
The website states, "When you sign up for Ledger Recover, a pre-BIP39 version of your private key is encrypted, duplicated, and split into three fragments. Each fragment is then secured by a separate company: Coincover, Ledger, and a third independent backup service provider."
The Ledger Recover service is not mandatory and remains an optional subscription for those who wish it. The service costs $9,99 per month.
The choice of this service will then depend on your knowledge and your ability to protect your keys yourself or to let Ledger take care of it for you.
So, since this service is not mandatory, why do some people go so far as to destroy their Ledger wallets?
Why is the service so criticized by the community?
In fact, a large part of the crypto community was outraged by this feature because the idea that one could give one's private key to a third party - a company no less - goes against basic security principles and the concept of "sovereignty" dear to maximalists.
The adage "Not your Keys, not your coins" is ingrained in the minds of crypto holders and the idea of being dispossessed of one's private keys is an affront to this principle. Similarly, the fact that Ledger is not in " open source " and whose code cannot be accessible to all is again another problem that tarnishes Ledger's image. Let us remember that Bitcoin is open source and accessible to all, and that in principle, the community appreciates and trusts open source projects more.
Some people then fear that there will be a " backdoor cuts", a backdoor in Ledger's code that would allow hackers to hack the seed phrase. The company has claimed, however, that there is no backdoor and that the new service has no security impact on Ledger devices.
The other issue that has been noted by many people is the KYC that Ledger will practice with this service. It is said in the Ledger Recovery service that proof of identity will be requested to restore the seed phrase. Having to present your identity documents is certainly what outraged users.
In reality, the root of the problem comes more from KYC than from the key management service which has existed for a long time, as proposed by the Casa.key wallet.
The problem posed by identity verification
The question of what would happen if governments asked Ledger to provide identity information was quickly asked. And, the answer is that being registered in France, the company must legally provide all the identity information requested by the Courts. This is the case for all companies registered in France and the European Union.
In the minds of supporters of cryptocurrencies, anonymity must be preserved and independence from governments or any form of legal authorities. Obviously, by offering such a service, Ledger violates the philosophy at the heart of the creation of Bitcoin, namely the protection of privacy advocated by cypherpunks.
For many crypto-holders, with the launch of such a service, Ledger has shown here the nature of the company, namely a mercantile enterprise which must generate ever more profits, even if this means violating the principles fundamentals of cryptocurrencies.
This is why many people have turned away from Ledger. It's not so much, again, for Recover Ledger's service as such, but for what it implies in terms of value and principles. Ledger is accused of offering a paid service to the detriment of the basic foundations of cryptography.
A society that does not respect the very foundations of cryptography is then perceived as a real betrayal by the most purist members.. This explains the mass rejection observed on social networks since the announcement of the launch of Ledger Recover. These are found towards ballet hardwares, such as ColdCard, for example, which are open source, and whose company's purpose is not to enrich itself but to help the community to protect itself...
Should you abandon your Ledger wallet?
There's no need to ditch your Ledger wallet if you have one. It's up to you to see if you share the same values with the Ledger company. In terms of security, this remains a high quality wallet.
The hardwares wallet are renowned for being the most secure wallets available. This is because they are physical devices that usually look like USB drives that store your private keys in an offline environment. It is precisely this feature that allows you to be protected from hacks and hacks.
There are several hardware wallets, each with their own functionalities. It's hard to say which is the best hardware wallet because it depends on the features that are considered. However, it is recommended to opt for wallets that are " open source " where anyone can audit and verify them. In fact, they are considered more reliable and more transparent.
—> If you are a maximalist bitcoiner and only own bitcoin, you have several options like bitbox or, ColdCard, which is an open source hardware wallet.
—> If you own cryptocurrencies, you can opt for Trezor type hardware wallets, safepal or CoolWallet.
If you don't want physical wallets, you can also opt for free wallets that offer the option multi-signature as BlueWallet For example. There is also the wallet KeyCasa, which offers you the same paid service. This is a method that allows you to protect your cryptocurrencies more effectively.
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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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