Ledger halts key recovery service after users protest, promises to release source code
Ledger hardware provider have been the buzz for this week on most social platforms, where its users have criticized the company's new firmware policy that will mandate users to share their identity means with alternative third-party company in order to secure their secret recovery phrase keys backup, Ledger Crypto Wallet's Seed Phrase Recovery Service Draws Criticism for mandatory use of Passport according to lots of cryptographic experts this new service totally defeats the idea of what decentralization holds, Ledger being a top notch security wallet provider will only drive majority of its users to seek new alternative backup wallet for securing their crypto tokens.
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Following intense criticism from users the company will be postponing its launch of Ledger Recovery service, from its recent Twitter space held on 23 May Ledger CEO Pascal Gauthier announce there have been miscommunication about how the new firmware policy works and further made more clarification on the company's plan on how the new recovery service will work following his announcement a roadmap was also unveiled for users to see subsequent updates that will be taking place along with the plan of initiating an open source code for other cryptographic developers to build their own backup pharase key on ledger hardware. Despite the delay on initiating the Ledger recovery service there are plans the Ledger Recovery service will still be integrated in subsequent week which still shows there won't be adequate changes concerning the use of alternative third-party for backing up users keys shown from the Image below.
From the team they believe the new Ledger open source will be a gateway to increase transparency, bring openness, auditability and trust among users.
With the new open source code will users accept the new Ledger recovery policy? Well weeks from now we will know how things will unfold.
I think Alistair Milne gave the best answer to this situation, I quote:
My own observation and opinion: the MPC technology itself, with which they actually want to connect the worlds of DeFi and CeFi, is not our friend at all. For example, the Binance Defi Wallet is also built on MPC technology, so everyone benefits from Web3, but at the cost of not actually having a private key in the DeFi wallet. The private key is encrypted in 3 parts, according to the MPC procedure. The bottom line is that this crypto won't be yours alone. Of course, I still consider this a useful service, but I draw attention to the fact that everyone should strive to maintain a DeFi wallet for their larger and really important devices, where only they themselves have the private key.
Such tricks, which Ledger tried to exploit now, can arouse in people the feeling that what the hell is going on now, will DeFi turn to CeFi?
Thanks for your feedback, well its quite obvious to users that we all consider to be defi in qoute of a hardware wallet isn't what it is with this new service a lot have come to understand that having a personal defi wallet could be more secure.