The Ledger Seed Recovery feature raises eyebrows

The undisputed king of the NFT and Crypto hardware wallet, Ledger, has found itself on the wrong side of controversy after it announced a new seed phrase recovery feature. Leading many in the Web3 community to reject its disregard for the core principles of crypto.

To address the elephant in the room, Ledger has unveiled a new subscription plan for Nano X users that involves a new seed phrase recovery feature. Essentially, allowing subscribers to share their encrypted private keys in three, which is then secured by Ledger and 2 third party custodians, Coincover and EscrowTech. Then, in the event of a lost or forgotten key, users can regain access to the wallet through an identity verification procedure involving a government-issued ID.

Crypto Twitter up in arms over new Ledger Seed Phrase Recovery feature

The immediate backlash from the NFT and Crypto communities saw the move as a step away from Ledger’s core ethos. Basically, in violation of the long-standing principle that the owners’ seed sets never leave the unit. While others have expressed concern that the feature could open a “backdoor” into the software even for those who don’t opt ​​into the service.

In addition, further outrage was expressed by the loudest voices in the community regarding the requirement for a government-issued ID that could essentially link users’ identities to their crypto assets. While further questions were raised regarding the potential for those with access to the linked ID to access the wallet.

Ledger recovery feature Rebellion forces discussion of wallet access

Despite the many concerns regarding Ledger’s new seed statement recovery feature, it has forced a discussion about the aforementioned elephant in the room. Namely, how to recover NFTs and other digital assets in case of a lost or forgotten seed phrase. A hub for mainstream non-crypto folk if they want in on the action without being at the mercy of a centralized exchange.

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*All investment/financial opinions expressed by NFT Plazas are from personal research and experience of our site moderators and are intended as educational material only. Individuals are required to research all products before making any type of investment.