• Ledger recently released a seed phrase recovery service called Ledger Recover, which uses a technique that divides a users’ seed phrase into three encrypted fragments.
• This has sparked criticism from the community over its security risks, as users have to provide a national identity card or passport to use the service.
• Ledger has pushed back against the criticism, stating that there are several inaccuracies and that users don’t have to use the service at all.
Ledger’s new Seed Phrase Recovery Service
Ledger recently released a new seed phrase recovery service called Ledger Recover, which offers users added safeguards in case they misplace their seed phrase. The service uses a technique that divides a user’s seed phrase into three encrypted fragments that are trusted with three custodians, namely Ledger, Coinover, and a third entity. The fragments are stored on hardware security modules (HSMs) and can only be decrypted on a Ledger device. Once the separate fragments are combined and decrypted, users can reconstruct the original see phrase.
Criticism of Seed Phrase Recovery Service
The release of this service has sparked criticism from its community over its latest seed phrase recovery idea, with members taking to social media to voice their disapproval due to security risks. To use the service, users have to provide a national identity card or passport which is concerning for some given Ledgers past data breach. Prominent crypto community members including Chris Dunn and Riccardo Spagni have voiced their disapproval too.
Ledgers Response
Ledger has pushed back against the criticism regarding their new seed phrase recovery idea by stating that there are several inaccuracies associated with it. They also stated that this is an optional service and users don’t have to use it should they not wish too – meaning those who purchased their device for personal management may continue doing so without using this extra layer of protection if desired.
Security Risks
The concern remains however as some worry about trusting external custodians with their private information as well as what would happen in case one of these custodians fails or malicious actors gain access to the fragmented pieces of information stored within them – making it easier for them to piece together individuals’ identities than if they had just stolen entire wallets full of coins/tokens at once instead.
Conclusion
Ultimately whether or not you choose to take advantage of Ledgers new seed phrase recovery system is up-to-you but it’s important you weigh up all possible risk factors before making any decisions either way – especially when dealing with sensitive personal information like your passport number etc…