Ledger has decided to postpone the launch of its private key recovery service after facing strong criticism from the crypto community, citing concerns over potential security vulnerabilities and the need for more transparency.
Hardware wallet company Ledger has decided to delay the release of its private key recovery service following a week of intense backlash from the crypto community. The company took to Twitter to address the concerns and announced plans to hold a town hall discussion on the matter.
Ledger’s chief technology officer, Charles Guillemet, stated on Twitter that the company has decided to accelerate its open-sourcing roadmap to bring more transparency and verifiability to its operations.
A whitepaper detailing the recover protocol is set to be released in the coming days, according to a graphic shared by Guillemet.
The Ledger recover service was introduced by the company last week as an optional subscription for users who wanted a backup of their secret recovery phrase. Ledger emphasized that this feature would not be automatically enabled through firmware updates on their devices.
The intention behind this service was to provide a means for owners of Ledger wallets to recover their private keys in case of loss. However, the company faced immediate criticism from users.
Crypto wallets rely on a public-private key pair for transaction authorization.
The public key is visible in blockchain data, but the private key is required to access the funds associated with it. It is crucial to keep the private key secure to prevent unauthorized transactions.
Users of Ledger hardware wallets previously believed that their private keys could not leave their devices. One of the main concerns raised by users was that enabling this new feature on any Ledger wallet could potentially become an attack vector.
The crypto community has expressed significant concerns regarding the security implications of Ledger’s new service, even if it remains disabled. Ledger has made efforts to reassure its users that their private keys and crypto funds remain safe.
In response to the criticism, Pascal Gauthier, Chairman and CEO at Ledger, published an open letter addressing the concerns raised by the community. Gauthier acknowledged the feedback and expressed a commitment to transparency and security.
The CEO stated that Ledger would take the time to address the concerns and build a more robust solution.