Bridging Security with Simplicity
Ledger, a prominent hardware wallet firm, has taken a bold stride by launching its cloud-based private key recovery service, Ledger Recover, on October 24. Unlike the Know Your Customer (KYC) checks carried out by centralized crypto exchanges, Ledger’s identity verification process is much less intrusive, requiring just a “valid, government-issued document.”
Ledger Recover: A Synopsis
In collaboration with blockchain protection provider Coincover, Ledger’s recovery service is a paid subscription model enabling users to securely backup their Secret Recovery Phrase (SRP). The SRP, a unique 24-word list, is a crucial element that backs up the private keys necessary to access crypto assets. This service is initially rolled out for Ledger Nano X users in selected regions including the US, Canada, the UK, and the EU, with plans for broader geographic and device support.
Crypto Community’s Concerns
The launch comes after a hiatus since May 2023, following substantial criticism from the crypto community. The concerns primarily revolved around the potential security risks associated with cloud-based recovery. However, Ledger emphasizes that this service is an optional add-on, reassuring users that they can continue using their Ledger wallets as before if they opt not to use the new service.
Competitive Landscape
Trezor, Ledger’s closest competitor, has shied away from a cloud-based model, instead launching Trezor Keep Metal, a physical seed phrase recovery tool, earlier this month. This move underscores the differing approaches to ensuring crypto asset security in the hardware wallet arena.
Pricing and Subscription
For those interested, Ledger Recover is priced at $9.99 per month or about $120 per year. A notable feature is the nine-month grace period for reactivating a lapsed subscription, albeit with a 50 EUR reactivation fee plus any outstanding balance.
Reflecting on the Future
With the advent of Ledger Recover, the discourse around crypto asset security and identity verification broadens. As Ledger strides into this new realm, the crypto community will be keenly observing the adoption and impacts of this cloud-based recovery service.
