Ledger, the popular hardware wallet, has launched a new service titled Ledger Recover, which garnered significant backlash from the crypto community. The service enables users to back up their seed phrases with third-party entities through an over-the-air firmware update. Although the fragments of the recovery phrase are encrypted and stored by three parties, critics pointed out that the seed phrase leaving the hardware wallet contradicts the trustless nature of Ledger. Responding to the criticism, Ledger’s co-founder and ex-CEO Éric Larchevêque stated that users should trust Ledger to use its product and the new update does not compromise the security model of the hardware wallet. Larchevêque believes that the only change is the user’s perception of trustlessness and that the firmware update does not have any malicious intent. In the midst of this controversy, competing hardware wallet provider GridPlus announced its plan to open source its device firmware in the third quarter of 2023. The move aims to increase transparency and regain trust among users.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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