ledger hardware wallet rolls out cloud based private key recovery tool

Hardware wallet firm Ledger is launching its cloud-based private key recovery solution, Ledger Recover, despite facing criticism from the crypto community.

Ledger’s Cloud-Based Private Key Recovery Solution

Ledger, a leading hardware wallet firm, is introducing its cloud-based private key recovery solution, called Ledger Recover. Despite facing criticism from the crypto community, Ledger is moving forward with the launch of this service. Ledger Recover, developed in collaboration with Coincover, offers users a secure and convenient way to back up their Secret Recovery Phrase (SRP) for their Ledger hardware wallet.

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Enhancing Security and Resilience

Ledger Recover is designed for users who want to add an extra layer of resilience in case their SRP is lost or destroyed. By subscribing to this service, users can ensure that their crypto assets remain accessible even in unforeseen circumstances. The recovery process involves encrypting a string of random numbers, which is then fragmented and distributed among three independent companies, including Ledger, Coincover, and EscrowTech. This distributed approach ensures the highest level of security, as no single company has access to the entire backup. Each fragment on its own is meaningless, providing an additional safeguard against potential breaches.

Optional and User-Friendly

Ledger emphasizes that Ledger Recover is an optional service, and users can continue using their Ledger hardware wallet without any changes if they prefer. The subscription-based model allows users to choose whether they want to utilize the cloud-based recovery solution or rely solely on their hardware wallet. Ledger’s chief technology officer, Charles Guillemet, assures users that the choice is entirely up to them.

Compatibility and Expansion

At launch, Ledger Recover is compatible with Ledger Nano X, with integration for Ledger Stax and Ledger Nano S Plus coming soon. However, it is important to note that Ledger Recover is not compatible with Ledger Nano S. Initially, the service is available to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. Ledger plans to expand coverage to more countries and support additional types of identification documents in the future.

Identity Verification and Privacy

Ledger Recover’s identity verification process differs from the Know Your Customer (KYC) checks conducted by centralized crypto exchanges. Ledger’s recovery system only requires a valid government-issued document for verification, collecting minimal personal information. This approach prioritizes user privacy and ensures that only necessary information is collected for the recovery process.

Pricing and Subscription

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Ledger Recover is available through a subscription model, priced at $9.99 per month or approximately $120 per year. If a user fails to pay the subscription fee, the service will be temporarily suspended. However, users have the option to reactivate their subscription within the next nine months by paying an administration fee of 50 EUR along with any outstanding balance.

In conclusion, Ledger’s cloud-based private key recovery solution, Ledger Recover, offers users a secure and flexible way to safeguard their crypto assets. With its distributed backup system, optional subscription model, and commitment to user privacy, Ledger aims to provide a reliable and user-friendly solution for those seeking enhanced security and resilience in the crypto space.

Ledger Recover: ID-Based Private Key Recovery Service

Launch and Open-Source Code

Ledger is proud to announce the launch of Ledger Recover, an ID-based private key recovery service for their hardware wallet. This innovative solution is set to provide users with peace of mind by offering a reliable method to recover their private keys in case of loss or damage. The launch of Ledger Recover coincides with the finalization of the open-source code for the service, which is available on GitHub. This commitment to transparency and collaboration ensures that users can trust the security and functionality of the recovery solution.

Provided by Coincover

Ledger has partnered with Coincover, a trusted blockchain protection platform, to provide the seed phrase recovery solution for Ledger Recover. Coincover brings their expertise in safeguarding digital assets, ensuring that users’ Secret Recovery Phrases (SRPs) are securely backed up. By leveraging Coincover’s technology, Ledger can offer a reliable and efficient recovery service that meets the highest standards of security and privacy. Users can have confidence in the integrity of their SRPs, knowing that they are protected by industry-leading technology.

How Ledger Recover Works

Encryption and Fragmentation of SRP

Ledger Recover employs a robust encryption process to safeguard users’ Secret Recovery Phrases (SRPs). When a user sets up their Ledger hardware wallet, a unique SRP is computed from a string of random 1s and 0s. This SRP serves as a backup for the private keys and grants access to the user’s crypto assets. Ledger Recover interacts solely with encrypted fragments of the SRP, ensuring that the SRP remains secure and unreadable. This encryption process adds an extra layer of protection to prevent unauthorized access to the SRP.

Distribution and Security Measures

To further enhance security, Ledger Recover employs a distributed approach to store the encrypted SRP fragments. These fragments are distributed among three independent companies: Ledger, Coincover, and EscrowTech. Each company holds a fragment, and no single entity has access to the complete backup. This multi-party distribution ensures that even if one company’s fragment is compromised, the SRP remains secure. The distribution of the fragments is carried out using end-to-end encrypted and authenticated channels, ensuring the highest level of security during transmission. By implementing these stringent security measures, Ledger Recover minimizes the risk of a single point of failure and provides users with peace of mind regarding the safety of their SRPs.

Benefits and Optional Service

Enhanced Resilience for Lost or Destroyed SRP

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Ledger Recover offers users an invaluable benefit by providing enhanced resilience in the event of a lost or destroyed Secret Recovery Phrase (SRP). Losing access to an SRP can be a distressing experience, potentially resulting in the permanent loss of valuable crypto assets. However, with Ledger Recover, users can rest assured that their SRP is securely backed up and can be recovered, mitigating the risk of asset loss. This service acts as a safety net, offering peace of mind to users who want to protect their investments and ensure they can regain access to their crypto assets.

Compatibility and Availability

Ledger Recover is designed to be compatible with Ledger Nano X, providing users with a seamless experience when utilizing this recovery solution. Ledger is continuously working to expand compatibility, with plans to integrate Ledger Stax and Ledger Nano S Plus in the near future. While Ledger Recover is not currently compatible with Ledger Nano S, Ledger is committed to providing a comprehensive range of options for their users. Additionally, Ledger Recover is initially available to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. Ledger has expressed their intention to expand coverage to more countries and support additional types of identification documents, ensuring accessibility for a wider user base.

Identity Verification and Subscription Details

Difference from KYC Checks

Ledger Recover’s identity verification process sets it apart from the Know Your Customer (KYC) checks commonly conducted by centralized crypto exchanges. Ledger’s recovery system prioritizes user privacy and collects only the necessary information for verification. Unlike KYC checks, which often involve extensive personal and financial details, Ledger Recover’s identity verification requires only a valid government-issued document. This streamlined approach ensures that users’ personal information is kept to a minimum, providing a secure and privacy-focused recovery solution.

Pricing and Subscription Terms

Ledger Recover operates on a subscription-based model, offering users flexibility and control over their recovery service. The subscription fee for Ledger Recover is $9.99 per month or approximately $120 per year. This pricing structure allows users to choose the payment plan that best suits their needs. In the event that a user fails to pay the subscription fee, the service will be temporarily suspended. However, Ledger provides a grace period of nine months, during which users can reactivate their subscription by paying an administration fee of 50 EUR, along with any outstanding balance. This approach ensures that users have the opportunity to reinstate their recovery service without losing their stored SRP and the ability to recover their crypto assets.

Rollout and Response

Previous Pause and Community Backlash

Ledger’s rollout of Ledger Recover comes after a period of pause and community backlash. In response to concerns raised by the crypto community, Ledger temporarily halted the recovery service in May 2023. This pause allowed the company to address the feedback and make necessary improvements. Ledger CEO Pascal Gauthier expressed the company’s commitment to launching the product only after the open-source code was released, ensuring transparency and building trust with their users. By taking the time to listen to the community and make necessary adjustments, Ledger aims to provide a recovery solution that meets the highest standards of security and user satisfaction.

Comparison with Competitor Trezor

While Ledger is introducing a cloud-based private key recovery solution with Ledger Recover, its competitor Trezor has taken a different approach. Trezor has opted for a physical backup solution, launching their own physical seed phrase recovery tool called Trezor Keep Metal. Both Ledger and Trezor are prominent players in the hardware wallet market, each offering unique features and solutions to cater to the diverse needs of crypto users. By providing a cloud-based recovery service, Ledger aims to offer users a convenient and secure option for safeguarding their private keys, while Trezor focuses on providing a physical backup solution. The availability of different options allows users to choose the solution that aligns best with their preferences and requirements.

Despite facing criticism from the crypto community, hardware wallet firm Ledger is launching its cloud-based private key recovery solution called Ledger Recover. The service, provided by Coincover, allows users to back up their Secret Recovery Phrase (SRP) for a fee. Ledger emphasizes the security of the service, stating that no single company has access to the entire backup. Ledger Recover is initially available for users in the US, Canada, the UK, and the EU, with more countries to be added in the future. The service is compatible with Ledger Nano X, with support for other Ledger devices coming soon. Ledger’s competitor, Trezor, has opted for a physical backup solution instead.

Source: https://cupstograms.net
Category: Crypto