Ledger adapts to crypto community concerns with open-source commitment

In this post:

  • Ledger postpones the launch of its Ledger Recover service due to backlash from the crypto community.
  • Concerns about privacy and security surround this service, which ties a user’s identity to their backup seed phrase.
  • As a response, Ledger is accelerating open-source plans to increase transparency and encourage community involvement.

Ledger faced harsh backlash following the announcement of their new feature, Ledger Recover.  The service, an ID-based private key recovery system, was criticized heavily by the crypto community, raising concerns over privacy and potential vulnerabilities. This led to the decision to pause the update, a decision conveyed in a Twitter Spaces meeting, an unprecedented display of transparency from Ledger.

Ledger’s Chief Technology Officer Charles Guillemet faced the community head-on, addressing questions and concerns about the new feature and why parts of the company’s codebase must remain closed.

Eric Larchevêque, the former CEO, explained the necessity of security elements that add extra layers of protection but inevitably obscure parts of the code. Their dedication to security was evident, with Guillemet acknowledging, “Security by obscurity is not the best we can do, but we have to deal with the secure element.”

Turning backlash into forward momentum

Following the heated debate, Ledger decided to pull back and reassess its course of action. In a masterstroke of crisis management, the company turned the tide of public sentiment by publishing an open-source roadmap and committing to providing more verifiability for its products. Yet, some parts of its codebase, which deal with the secure element chip used in credit cards and passports, remained proprietary, adding to the company’s security processes.

Pascal Gauthier, Chairman & CEO of Ledger, addressed the contentious issue of potential government subpoenas. He admitted uncertainty about the company’s response but asserted that Ledger’s loyalty would always lie with its customers. He urged those with doubts about the service to opt-out of it, emphasizing that customer safety was paramount.

Gauthier’s commitment to customer security was further underscored by a sobering statistic: out of over 400 million crypto users, only 10 million utilize hardware wallets. This fact served as a stark reminder of the scale of risk in the current crypto ecosystem.

Guillemet reflected on the experience as humbling, emphasizing the importance of community engagement in decision-making processes. Ledger’s leaders acknowledged the learning curve in rolling out new features and turned the backlash into an opportunity for growth.

A new chapter for Ledger: Open-source and community-centered

In a further attempt to address the concerns raised by the crypto community, Ledger accelerated its plans to open-source its codebase, starting with core components of its operating system and the Ledger Recover service.

Guillemet disclosed that a white paper on the Recover Protocol would be available, allowing security experts to understand the system comprehensively. He also encouraged developers to create their own backup provider for the seed phrase shards.

Ledger’s plans to open source more of their code until they reach a level similar to that of Raspberry Pi demonstrates their commitment to transparency and their willingness to adapt to the needs and concerns of their user base.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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