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  • Writer's pictureKENDRICK CLEVOR

Ledger and Its Future With Crypto

Updated: May 23, 2023


Well, as you may have already heard, there's a lot of controversy surrounding Ledger hardware wallets and Ledger's most recent storage offerings. All of this began with Ledger's rollout of the "Ledger Recover" option. The "Ledger Recover" option gives Ledger Wallet holders the ability to regain access to their stored funds by way of an ID-based key recovery option now being offered by Ledger. According to Ledger's FAQs, "If you lose or don't have access to your Secret Recovery Phrase, the service allows you to securely restore your private key using a Ledger device."

The way that the recovery option works is through the use of KYC or Know Your Customer identification protocols, along with the storage of your fragmented private key being divided between three separate entities, Coincover, Ledger and an independent backup service provider. As Ledger explains in their FAQs (link to Ledger Recover FAQ below), the private key divided has no value. When you desire to gain access to your wallet, 2 of the 3 entities will release fragments of your private key back to your Ledger Wallet, reassembling the fragments to build your private key.

Some crypto holders have become concerned about the potential security vulnerabilities involved in this recovery process and others are disturbed by Ledger suggesting such a thing as the sharing of one's private key in the first place. I understand and consider both to be legitimate concerns considering the Ledger database breach back in 2020 ( and the suggestion of breaking one of crypto's self custodying fundamentals of "never share your private key". On the other hand, I'm in strong agreement with the need for such a service as "Ledger Recover". Many people are not simply irresponsible or incompetent, but are prone to unexpected events of loss. Thus, why insurance is a long running business and mandatory in many cases. Crypto self-custody is no different. It's actually quite the environment for loss and unexpected misfortune. Any time that you hear a story about a lost hard drive or someone trying to recover funds from a wallet they no longer have access to, the case for "Ledger Recover" becomes stronger and more acceptable. Yes, there are unsavory players in the world of crypto and finance, but this is true even in politics and religion. I don't think you will find an industry or field with 100% of its players on the "up and up". Ledger's history with crypto and its position on security prior to this "recovery" discussion says a lot about the type of player it has been and the type of player it still is. Time will tell if Ledger has advanced security and self-custody in crypto or if they have done the opposite, but I'm leaning towards "advanced".

If there is a way to make "little old ladies" and "grumpy grandpas" more comfortable with buying and holding crypto or make reluctant parents more comfortable with handing down Ledger Wallets to their "forgetful teens" or "not so mindful" adult children, then I am on board. Crypto adoption is the order of the day and we have to get there in the most sensible and secure manner possible. I would suggest listening to a few different perspectives on the topic when determining how you will move forward with your crypto custody needs and also take a look at Ledger's Recover FAQ ( to gain as much insight about your next steps. This seems to be a hot topic on YouTube, so you can probably start your search there for some "level headed" dialogue on the subject. A couple positive aspects to consider if you're completely turned off by the Ledger Recover option: 1. Ledger Recover is an opt-in paid service, not mandatory. 2. Ledger Recover is not available on the original Ledger Nano S (in case you just like knowing your device can never be opted into this service).

By Jamal Saafir

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