Hardware wallet agency Ledger is rolling out its cloud-based private key recovery answer regardless of going through vital criticism from the crypto group.
Ledger Recover, an ID-based private key recovery service for the Ledger hardware wallet, is launching on Oct. 24, the agency formally announced on X (previously Twitter). The launch comes at the side of Ledger finalizing the open-source code for the Ledger Recover on GitHub.
Provided by blockchain safety platform Coincover, Ledger’s seed phrase recovery answer is a paid subscription service permitting customers to again up their Secret Recovery Phrase (SRP). SRP is a singular checklist of 24 phrases that backs up the private keys and provides customers entry to their crypto belongings.
A spokesperson for Ledger informed Cointelegraph {that a} Ledger wallet encrypts a “string of random 1s and 0s” from which a SRP is computed. The encrypted string of numbers is then fragmented into three items used to backup a SRP.
“Ledger Recover only interacts with the fragments, and never with your SRP in its readable format,” the consultant famous. According to Ledger, encrypted SRP fragments are distributed utilizing end-to-end encrypted and authenticated channels of three unbiased corporations together with Ledger, Coincover and EscrowTech. The spokesperson added:
“Each fragment on its own is a useless set of random numbers, and no single company has access to the entire backup. This ensures the highest level of security and removes a single point of failure.”
Ledger Recover was designed for customers who “want to add an enhanced layer of resilience” in case their SRP is ever misplaced or destroyed, Ledger’s chief know-how officer Charles Guillemet stated. He additionally emphasised that Ledger Recover is an elective recovery service, including:
“If you don’t wish to use the service, no worries — it’ll always be 100% optional. You can simply continue using your Ledger as you did previously — nothing will change.”
At launch, Ledger Recover is appropriate with Ledger Nano X, with Ledger Stax and Ledger Nano S Plus integration coming within the close to future. The answer isn’t appropriate with Ledger Nano S, according to the Ledger Recover FAQ.
Ledger Recover is initially obtainable to passport or id card holders within the United States, Canada, the United Kingdom and the European Union. “We will be covering more countries and adding support for more documents,” Ledger stated.
The agency emphasised that Ledger Recover’s id verification “is not the same” as Know Your Customer (KYC) checks carried out by centralized crypto exchanges. Ledger famous that its recovery system solely requires a “valid, government-issued document,” stating:
“Identity verification inherently collects much less information compared to KYC […] KYC involves ID verification but it can also include revenue information, record of criminal activity, citizenship check, etc.”
According to social media posts, the Ledger Recovery service will probably be obtainable at $9.99 per thirty days, or about $120 per yr. If a consumer fails to pay the subscription, the subscription will probably be suspended, permitting the consumer to reactivate the subscription within the subsequent 9 months.
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“You will need to pay an administration fee of 50 EUR along with any outstanding balance,” Ledger Recover FAQ reads.
The rollout comes months after Ledger paused the recovery service in May 2023 in response to group backlash. Ledger CEO Pascal Gauthier subsequently stated that the agency will launch the product as soon as its open-source code is released.
Ledger’s largest competitor, Trezor, has stayed away from introducing a cloud-based private key recovery answer, choosing a bodily backup answer. Trezor launched its own physical seed phrase recovery tool, Trezor Keep Metal, in mid-October 2023.
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