Hardware wallet firm Ledger is defying criticism from the crypto community by launching its cloud-based private key recovery solution, Ledger Recover. Developed in collaboration with Coincover, this service allows users to securely back up their Secret Recovery Phrase (SRP) for their Ledger hardware wallet. Ledger emphasizes the security of the service, as the backup is fragmented and distributed among three independent companies, ensuring no single entity has access to the entire backup. Ledger Recover is initially available in the US, Canada, the UK, and the EU, with plans to expand to more countries in the future. Read on to learn more about this innovative solution and how it compares to its competitor, Trezor.
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Ledger’s Cloud-Based Private Key Recovery Solution
Ledger, a renowned hardware wallet firm, is set to launch its innovative cloud-based private key recovery solution called Ledger Recover. This service, developed in collaboration with Coincover, aims to provide users with a secure and convenient way to back up their Secret Recovery Phrase (SRP) for their Ledger hardware wallet. Despite facing criticism from the crypto community, Ledger remains committed to offering this service, emphasizing its commitment to security and user privacy.
Partnership with Coincover
Ledger has partnered with Coincover, a trusted blockchain protection platform, to ensure the integrity and security of the Ledger Recover service. Coincover brings its expertise in safeguarding digital assets, ensuring that users’ 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 protection of their SRPs, knowing that they are backed by industry-leading technology.
How Ledger Recover Works
Ledger Recover employs a robust encryption process to safeguard users’ Secret Recovery Phrases (SRPs). When setting up their Ledger hardware wallet, users’ SRPs are computed from a string of random numbers. Ledger Recover interacts solely with encrypted fragments of the SRP, ensuring that the SRP remains secure and unreadable. These encrypted fragments are then 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 complete backup. Each fragment on its own is meaningless, providing an additional safeguard against potential breaches. With this advanced encryption and distribution system, Ledger Recover minimizes the risk of unauthorized access and provides users with peace of mind regarding the safety of their SRPs.
Enhancing Security and Resilience
Encryption and Fragmentation of SRP
To enhance the security and resilience of users’ Secret Recovery Phrases (SRPs), Ledger Recover employs a robust encryption process. When users set up their Ledger hardware wallet, their SRPs are generated from a series of random numbers. Ledger Recover interacts only with encrypted fragments of the SRP, ensuring that it remains secure and unreadable. This encryption process adds an extra layer of protection, preventing unauthorized access to the SRP and safeguarding users’ crypto assets.
Distribution and Security Measures
To further strengthen security, Ledger Recover adopts a distributed approach to store the encrypted SRP fragments. These fragments are distributed among three independent companies: Ledger, Coincover, and EscrowTech. By distributing the fragments, no single entity has access to the complete backup, ensuring the highest level of security. 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, guaranteeing the utmost security during transmission. With these stringent security measures in place, Ledger Recover minimizes the risk of a single point of failure and provides users with peace of mind regarding the safety of their SRPs.
Compatibility and Availability
Compatibility with Ledger Devices
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. By offering compatibility with different Ledger devices, Ledger aims to cater to the diverse needs and preferences of crypto users, ensuring accessibility and convenience.
Identity Verification and Subscription Details
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.
In terms of subscription details, 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 has not been without its challenges. The company faced a period of pause and community backlash, which prompted them to temporarily halt the recovery service in response to concerns raised by the crypto community. This pause allowed Ledger to carefully listen to the feedback and make necessary improvements to ensure the highest standards of security and user satisfaction. Ledger CEO Pascal Gauthier expressed the company’s commitment to launching the product only after the open-source code was released, demonstrating transparency and building trust with their users. By taking the time to address community concerns and make necessary adjustments, Ledger aims to provide a recovery solution that meets the expectations and needs of their users.
Comparison with Competitor Trezor
In the hardware wallet market, Ledger’s cloud-based private key recovery solution with Ledger Recover sets it apart from its competitor, Trezor. While Ledger focuses on offering a cloud-based recovery service, Trezor has taken a different approach by providing a physical backup solution with their own physical seed phrase recovery tool called Trezor Keep Metal. Both Ledger and Trezor are prominent players in the industry, each offering unique features and solutions to cater to the diverse needs of crypto users. Ledger’s cloud-based recovery service provides users with a convenient and secure option for safeguarding their private keys, while Trezor’s physical backup solution offers an alternative for those who prefer a tangible backup. The availability of different options allows users to choose the solution that aligns best with their preferences and requirements, ensuring a personalized and tailored experience in securing their crypto assets.
Despite facing criticism, Ledger, a leading hardware wallet firm, is launching Ledger Recover, a cloud-based private key recovery solution. Developed in collaboration with Coincover, this service allows users to securely back up their Secret Recovery Phrase (SRP) for their Ledger hardware wallet. The recovery process involves encrypting and distributing fragments of the SRP among three independent companies, ensuring the highest level of security. Ledger Recover is an optional subscription-based service and is initially available in select countries. Ledger’s competitor, Trezor, offers a physical backup solution. Choose the solution that best suits your needs and preferences in safeguarding your crypto assets.