Ledger Launches Cloud-Based Private Key Recovery Solution Despite Prior Criticism
Summary:
Ledger, a hardware wallet company, is launching a cloud-based private key recovery solution called Ledger Recover, regardless of earlier criticism. Provided by Coincover, the service offers users backup for their Secret Recovery Phrase (SRP). Initially, it will be available to identity card holders in the US, Canada, the UK, and the EU, with plans for wider rollout. The service is optional and comes at a cost of $9.99 per month. Notably, Ledger Recover's identity verification process is stated to be less rigorous than typical Know Your Customer (KYC) checks, needing only a valid, government-issued document.
Despite backlash from the crypto world, Ledger, a company known for its hardware wallet, is introducing its cloud-based program for private key recovery. This ID-based private key recovery service, known as Ledger Recover, will go live on October 24 as officially declared on X (formerly known as Twitter). This announcement comes hand in hand with the finalization of the open-source code for the Ledger's recovery solution on GitHub.
The cryptocurrency security platform, Coincover, will oversee the paid subscription service, which serves as a backup for the user's Secret Recovery Phrase (SRP). This SRP, a unique set of 24 words, offers a back up for private keys, granting users the ability to access their crypto properties.
Ledger’s technical lead, Charles Guillemet, explained that the Ledger Recover is intended for clients seeking an improved layer of resilience should they misplace or damage their SRP. He clarified that while Ledger Recover is a useful recovery tool, it is not mandatory and users can continue to use Ledger as they have been, with no changes necessary.
Upon launch, Ledger Recover will only be compatible with Ledger Nano X, but integration with Ledger Stax and Ledger Nano S Plus is expected in the foreseeable future. However, it won't be compatible with Ledger Nano S as per the FAQ of Ledger Recover.
Initially, Ledger Recover will only be available to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. As stated by Ledger, more countries will soon have access and support for additional documents will increase.
Ledger highlighted that the identity verification required for this service differs from the Know Your Customer (KYC) checks used by centralized crypto exchanges. Ledger Recover merely necessitates a legitimate government-issued document, gathering significantly fewer details than a typical KYC check.
Discussed in social media posts, Ledger Recovery's subscription will be priced at $9.99 per month or approximately $120 annually. If a user doesn't fulfill the subscription requirements, their subscription will be put on hold, with a nine-month grace period for reactivation.
The announcement of its launch follows a temporary discontinuation of the service in May 2023 due to strong reactions from the community. Ledger CEO, Pascal Gauthier reinstated that the product wouldn't be launched until its open-source code was released.
Trezor, Ledger's major competitor, hasn't endorsed a cloud-based private key recovery system, instead opting for a physical alternative. In mid-October 2023, Trezor introduced its physical seed phrase recovery tool, the Trezor Keep Metal.
Published At
10/24/2023 2:24:05 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.