Ledger has announced the launch of Ledger Recover, an optional subscription-based service that enables users to add an enhanced layer of security. Meaning their Secret Recovery Phrase will be protected under Ledger Recover.
Ledger Recover is yet to be released; however, the community can expect Ledger to come up with those details pretty soon.
What is now known is that Ledger Recover will not be enabled automatically with a firmware update. Users will have to separately opt for the service via a subscription model and manage the security themselves. In the announcement, Ledger clarified that they had never accessed the SRP and planned never to access it.
Launching Ledger Recover helps Ledger to offer a mechanism that allows users to back up their SRP in the most secure manner.
SRP is generated through the BIP39 standard on all devices. Ledger leverages the potential of the secure element of a user’s device and shares the same only with the respective user. After it is officially launched, users who subscribe to Ledger Recover will see Ledger encrypting the private key and splitting it into three fragments through Shamir Secret Sharing. Secure Element Chip acts like a backbone during the process with the core objective of lowering the risk of the Secret Recovery Phase.
Different parties store all three fragments, three to be specific, on Hardware Security Modules that are secure cryptographically. Despite being an announcement ahead of the launch, Ledger sees itself gaining traction on the list of the best crypto wallets for 2023. Others on the list are Exodus, MyCelium, Coinbase, Robinhood, and ZenGo, to mention a few.
One of the most common questions the community has put forward is regarding data recovery if any companies go under. Ledger has established a protocol with all of them to protect the data regardless of their condition. The fragments that are encrypted will be adequately distributed to make sure that the backup is secure.
The Secret Recovery Phase is essential for users looking to access their wallets. What puts them at risk is someone else accessing the SRP, thereby gaining access to the user’s wallet. Ledger Recover can help restore private keys but does not provide the SRP directly to the user.
Having a physical copy of a hard copy of the phrase makes it the user’s responsibility to protect it from others.
Ledger Recover, or any other similar service attracts criticism from members. Many believe using a service grants the platform permission to interact with the elements, SRP in this case, without which there is no scope for creating a backup. Calling this a concern, many members have expressed doubt about the services.
Ledger clarified that SRP is stored in a secure element chip where the data is encrypted and split into three fragments. In other words, SRP remains confidential and only viewable by the user.