If you are a cryptocurrency investor and are interested in hardware wallets, you have probably heard of Ledger Recover, a recovery feature from the renowned French hardware wallet company, Ledger. Ledger Recover was introduced on May 16, 2023, but faced a lot of opposition from the Reddit and Twitter communities. Consequently, Ledger had to pause and open-source the project before its official launch on October 24, 2023. Ledger Recover is the most controversial feature from Ledger to date.
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What is Ledger Recover ?
Ledger Recover is a security key recovery service for Ledger hardware wallets. It backs up the recovery phrase (24-word seed phrase) of the hardware wallet and helps you restore the security key on a new Ledger hardware wallet if you happen to lose the 24-word seed phrase.
Ledger Recover is useful for new users who are not yet experienced in securing their 24-word recovery phrase. It can also help in cases of unforeseen circumstances such as fires or natural disasters. If the old hardware wallet is damaged and you lose the backup recovery phrase simultaneously, then Ledger Recover is the service you need!
How Does Ledger Recover Work ?
Ledger Recover is an optional paid service, meaning it is turned off by default. To use it, you must subscribe and pay €9.99 per month via the Ledger Live app, and you must confirm through the current hardware wallet. The system will then create a secure backup of important information, including the encrypted private key and your identity. This backup is stored on Ledger’s servers and those of partner companies. When users need to recover, they must verify their identity, and Ledger will restore the security key on a new Ledger hardware wallet.
Ledger ensures that all KYC information and security keys will be encrypted and stored securely, with no single company able to access them independently. Only the verified owner can access and restore them.
Why Are Users Opposed to Ledger Recover ?
For a long time, users assumed that when using a hardware wallet, the manufacturer could not access the security key or the device’s recovery phrase. However, when Ledger Recover was introduced, people realized that the security key could be extracted through a firmware update. As a result, the Ledger hardware wallet community opposed it and called for a boycott of Ledger.
However, the reality is that all hardware wallets on the market today can potentially access the security key through firmware to execute transaction confirmations. It depends on whether the manufacturer intends to back it up. Therefore, when using a hardware wallet, users must place some trust in reputable manufacturers or opt for open-source hardware wallets like Trezor One and Trezor T—the world’s most trusted open-source hardware wallets.
Additionally, users fear that backups could be seized by the government and force Ledger and partner companies to hand them over upon request, posing potential risks when subscribing to the Ledger Recover service.
However, Ledger always asserts that if you do not subscribe or use the Ledger Recover service, your hardware wallet remains as secure as before. Ledger will never back up the device’s security key without your permission, ensuring the security key stays safe within the device’s Secure Element chip.
Is the Ledger Hardware Wallet Still Safe?
The Ledger Nano S Plus and Ledger Nano X are the two best-selling hardware wallets from Ledger. Currently, Ledger Recover is only available for the Nano X, but this service will be extended to all of Ledger’s products in the future.
According to Ledger, the company will never and cannot back up the user’s security key from the device independently, as all transactions and service subscription orders require confirmation via the hardware wallet’s physical button. Thus, all Ledger hardware wallets remain as secure as they have always been.
In Admin’s opinion: If Ledger had intended to steal users’ security keys, they would never have publicly announced the Ledger Recover service!
As a long-time user of Ledger hardware wallets, Admin believes there is no need to fear the new Ledger service. The Nano S Plus and Nano X hardware wallets will still be safe for securing all your coins and tokens.
Alternatives to Ledger Hardware Wallets ?
If you are concerned about security issues, it is best to buy an additional open-source hardware wallet as a backup. Trezor is the best open-source hardware wallet manufacturer today, with the Trezor One and Trezor T being the most notable products. All software, app, and firmware source codes of Trezor hardware wallets are publicly available online and verified by industry companies and the community, ensuring transparency and security.
Conclusion
Investing in and securely protecting cryptocurrency is always a top priority for hardware wallet users. Whether you use hardware wallets from any manufacturer, you must place some trust in them. Therefore, we should choose and use hardware wallets from the most reputable and well-known manufacturers.
Ledger Recover is an optional service. If you do not subscribe to it, you can be completely assured that the Ledger Nano hardware wallet remains safe and secure as always, with no concerns.
