[23-05-19] Is Ledgers New Bitcoin Key Recovery Feature Safe? Experts Have Doubts
Kryptowerk:
https://www.msn.com/en-us/money/personalfinance/is-ledger-s-new-bitcoin-key-recovery-feature-safe-experts-have-doubts/ar-AA1bpgQo
"When Ledger, a Paris-based hardware wallet-maker, announced a new key-recovery feature this week, it thought the move would be popular.
Allowing users to recover their private keys – much like you can recover your password if you forget it – would help onboard customers, the company believed. Potential crypto users are known to be turned off by crypto's unforgiving self-custody ethos ("not your keys, not your coins"). But a key recovery service would offer more comfort."
[Excerpt]
"Security concerns
The news of the update provoked a storm of criticism from the crypto community, with accusations that Ledger’s new offering contradicts its past statements about keeping private keys off the internet.
In particular, Crypto Twitter piled on the tweet Ledger’s official account posted in November, assuring users of the safety of their devices."
Kakmakr:
I think the oil on the fire was the fact that Leger were hacked before, so people do not trust them to keep anything safe. The hackers used the hacked information to target individual customers that bought hardware wallets from them. (Phishing attacks)
Any informed Bitcoin user will tell you NEVER to store any "Private key" or "Seed" online, so it is ludicrous that a hardware supplier would even try to provide a service like that. ::)
Onset:
Just when I thought they couldn’t pull out anything worse than all the mistakes they’ve done before! So in order to bring those fearful people who hated Bitcoin for being decentralized we’re inserting a possible backdoor so everybody who practiced self-custody before is now at risk? Then what’s the point of a Ledger, paying a company who’s been hacked before to “safely” store the most important information of my wallet? WTF do they have a brain to think?? This sounds almost funny, it’s so bad it wouldn’t fit even as a 1st of April joke
Woodie:
I wonder how ledger arrived at this decision, are they saying most of its current users lose total access to their coins and they are returning the favor by bringing this feature to life?
Maybe this is a ploy to try onboard new users to the ledger world ,who would have perceived digital currencies work as good as an email address were any user forgets his/her password can easily hit the forgot password button and access restored just like that...
But giving them a benefit of doubt, in a few months to come if this helps them sell more hardware wallets, then they might feel vindicated for this business decision as its a game of numbers at the end of the day for them..so can't blame them entirely !
Kryptowerk:
Quote from: Onset on May 21, 2023, 01:54:33 AM
Just when I thought they couldn’t pull out anything worse than all the mistakes they’ve done before! So in order to bring those fearful people who hated Bitcoin for being decentralized we’re inserting a possible backdoor so everybody who practiced self-custody before is now at risk? Then what’s the point of a Ledger, paying a company who’s been hacked before to “safely” store the most important information of my wallet? WTF do they have a brain to think?? This sounds almost funny, it’s so bad it wouldn’t fit even as a 1st of April joke
It does sound like a bad joke for anyone that really knows what Bitcoin is, what it stands for, what it is capable of, and why it was created in the first place.
For everyone else, this probably sounds like a great solution. "Of, finally they solved the lost-your-seed-and-you're-fucked issue."
Let's see how this plays out in the long run. I would very much hope to see this has a major impact and creates a big disruption in the hardware-wallet sector. But I kind of doubt it will change much in the mid-long. Hope I'm wrong.
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