Ledger is a crypto custodial services provider that specializes in hardware wallets. The non-custodial wallets of the firm have recently introduced a new feature. With the new product, the users of the product will be able to recover their private keys stored on cloud storage.
Ledger officials have told media that the recovery tool is not a KYC check and requires less information from the account holders. It is important to mention that KYC Is a type of account verification requirement sanctioned by regulatory agencies.
Ledger introduces new products and features regularly. The firm has added a new feature for its users to help them recover their private keys. However, the feature has received some negative feedback from cryptocurrency investors.
Ledger has retained that the feature is an ID-backed private key recovery option for the owners of ledger hardware wallets. The new service went live on October 24th as per the new post of the official Ledger account at X.
Ledger Partners with Coinrecover to Offer Private Key Recovery Services
Ledger finalized the open-sourced code for its new recovery services on GitHub recently. The firm informed the users that it is working with Coincover to enable the new feature. Ledger update revealed that the seed phrase option is the paid subscription model that allows the users to back their Secret Recovery Phrase or SRP on cloud storage.
It is important to note that SRP is usually a combination of 24 randomly generated words that are used to recover private keys in the event that the wallet user loses their private keys.
An official from Ledger briefed media recently that the wallet that private keys consist of strings of random numbers ranging from 1s to 0s. The SRP for every wallet user is generated based on this string. This encrypted string code has digits that are divided into three parts for backing up SRP.
The private key recovery option is called Ledger Recover and it interacts with fragments of the distributed SRP to make sure that the entire SRP is not stored in a readable format.
The official further told the media that the fragments of the private key are divided and secured using end-to-end encryption with three independent firms namely Ledger, Coincover, and Escrow Tech.
Ledger Adds Additional Layer of Security for Hardware Wallets
Ledger has informed the media that Ledger Recover goes towards bringing more security to the firm. The company has retained that users do not have to worry about losing their SRP. CTO Charles Guillemet told the media that Ledger Recover is a 100% optional service.
The executive further informed media that Ledger Recover is available for its products such as Ledger Nano X, Ledger Stax, and Ledger Nano S Plus. The service makes use of the ID based on passport or national security number for citizens in the UK, USA, EU, and Canada.
Ledger has told the media that it is planning on bringing the recovery option for other nations as well. The firm has also assured its users that it is not the same as KYC checks retaining that it is strictly limited to user-authentication based on valid government-issued documents.
On this account, this service collects information from the users such as citizenship, criminal activities and other options.