- Subtract ledger firmware update.
- The update has attracted a lot of criticism from the community.
- Viewer wallet provider critics.
Deciding how to store crypto assets can be a difficult decision for many, as each method comes with its drawbacks. However, using hardware governorIt is a technology known as cold storage, and is often touted as the most secure option by proponents of basic encryption
This is because hardware wallets do not have an internet connection, unlike other means of storing crypto assets, which reduces risks hacks. However, cold storage methods are not without their drawbacks, as these devices can be misplaced, and like other non-custodial methods, users can lose seed phrases.
One of the most popular hardware wallet providers, Ledger, has attempted to address one of these perceived vulnerabilities, but has received significant opposition from the cryptocurrency community due to the possibility of another vulnerability.
On Tuesday, May 16th Arbitrage Unveiled Ledger Recover, an “optional subscription” service that helps users back up their raw wallet phrase for $9.99 per month.
Ledger explains that the service will split customers’ seed phrases into three cryptographic parts stored separately with Ledger, Coincover, and EscrowTech.
While Ledger asserted that the process was only secure and opt-in, those assurances failed to convince a cross section of crypto users, who suggested that the new feature created a backdoor to customers’ wallets that bad actors could exploit.
One of the most vocal was the foobar rep cash builder, @0xfoobar on Twitter Critics From the wallet recovery service that comes with the latest Ledger firmware update. Fobar, known for calling out vulnerabilities in project contracts, urged members of the crypto community to “stop using Ledger.”
"The code path to send private key material over the internet will be on your device, whether you opt in or not. Hackers can take advantage of this, and software bugs more likely to leak. Ledger’s business trajectory is one of wanton disregard for customer safety. Switch wallets," foobar argued in a lengthy Twitter thread.
Former Grant Thornton senior manager Aftab Hussain, better known as DCInvestor, reminded members of the crypto community that Ledger suffered a data breach in 2020 that leaked the personal information of about 272,000 customers.
“The last thing you want on their servers is your private key,” he said added.
Ledger refuted these criticisms.
Ledger responds to critics
Ledger has countered critics of the wallet recovery service, asserting that the service does not create a backdoor to customers’ wallets.
"Here, the point which is important to remember is that you stay in control…there’s no backdoor, nothing will happen without your consent on the device…in the future, the whole protocol will be open, so you’ll be able to verify how the whole protocol works," Vice President of Ledger's Innovation Lab Nicolas Bacca asserted.
Chief Technology Officer Ledger Charles Guillemet Proposal That the product was intended for people who were new to coding technology and struggled to understand the sometimes intimidating user experience.
“Ledger Recovery is what our 100 million customers want in the future – they will get into encryption in a secure way with Ledger Recovery,” said Ledger CEO Pascal Gauthier argue.
on the flip side
- Trezor, another popular cryptocurrency hardware wallet provider, has recently taken off Censorship concerns After merging CoinJoin in a recent upgrade.
Why should you bother
After the recent explosions in the cryptocurrency industry, trust in centralized platforms has waned dramatically, fueling self-sequestration campaigns that have seen many asset holders dump their assets from exchanges.
Read this to learn more about hardware crypto wallets:
12 of the best crypto hardware wallets to explore in 2022
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