Crypto wallet maker Ledger has been criticized for its new "Ledger Recover" feature. Some Twitter users have argued that the service, which stores encrypted user seed phrases with third-party custodians, undermines Ledger's commitment to privacy and security. At the Twitter Space conference, Ledger CEO Pascal Gauthier defended the service. "You say this is not what customers want. Actually, this is what future customers want. This is how the next 100 million people get into crypto," he said. The incident highlights a long-standing tension between blockchain companies trying to attract new users and ideological factions in the cryptocurrency community: how to balance user experience with core values. Ledger Recover is a cryptocurrency hardware wallet, a "cold storage" device that holds a person's crypto on a USB flash drive. Hardware wallets are considered the safest way to hold cryptocurrencies, compared to browser-based "hot wallets" that are always connected to the internet, such as MetaMask, or exchanges that hold cryptocurrencies on behalf of customers, such as Coinbase and Binance.
Ledger, a cryptocurrency wallet manufacturer, recently launched a new recovery service, which has caused concern among some users. Some people are worried that this service may provide opportunities for hackers to steal their funds. However, Ledger's leadership said that this service is completely optional and emphasized its security practices. They also plan to open source its code in the future so that users can see how Ledger's recovery service securely encrypts user data and runs safely in the background. In addition, Ledger's recovery feature is a necessary step to attract new cryptocurrency users, and the company has sold 6 million devices on the market and has never been hacked.