Crypto wallet provider Ledger recently launched a service that sparked a lot of controversy. This is Ledger Recover, a tool that allows users to recover their private keys. Some criticized the new product, saying it would allow the provider to obtain users’ personal data. Amid the Ledger controversy, Charles Hoskinson, the creator of Cardano, gave his opinion on what features crypto wallets should have.
Hoskinson explains why users prefer hardware wallets
Ledger recently denied rumors that it could extract users’ private keys without their consent through its Ledger Recover service. At the same time, the creator of Cardano shared his thoughts on the features of hardware crypto wallets in terms of security. He stated : “Safety comes from simplicity: designing the smallest possible footprint“. He recommended the use of free software which will be subject to regular audits carried out by different sources.
The creator of Cardano cited an important element for any company making specific promises regarding its security model. These are non-modifiable firmware, the concept of which is followed by Yubikey, for example. However, the co-founder of Input Output Global acknowledged that it would be difficult to use this approach with cryptos. “Decentralizing the update process would significantly improve security», highlighted Hoskinson.
Moreover, according to the creator of the Cardano network, users choose Ledger strictly for security. This is because they would be less interested in the user experience and the convenience that the hardware wallet provider guarantees. In this context, Hoskinson believes that key security information from hardware wallets should only be passed on to their owners.
The creator of Cardano explained: “We might as well encrypt data with PGP (pretty good privacy) and leave it in Gmail. But, we chose to use hardware wallets because they ensure that the private keys stay in one place, on hard-to-tamper hardware.“.
While Ledger faces a controversy, the startup Keyp launches a project to convert Nintendo Game Boy into hardware wallets. Joseph Schiarizzi, a developer at crypto firm Keyp, provided details about the new project. He indeed explained:We produce a real physical cartridge that allows you to use your Game Boy as a cold storage wallet, generate mnemonic phrases and save them safely offline“.
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