Ledger, a major provider of hardware cryptocurrency wallets, has introduced an offline tool for private key recovery to help users regain access to their crypto wallets without relying on cloud-based services or personal data.
Ledger Recovery Key is an offline physical recovery tool allowing Ledger Flex or Ledger Stax users to store their private keys on a smart card with NFC connection, the firm said in an announcement shared with Cointelegraph.
Unlike Ledger’s previously released key recovery product, Ledger Recover, which stores encrypted fragments of recovery phrases in cloud-based hardware security modules, Ledger Recovery Key is always offline and protected by its own PIN.
While also being optional to Ledger wallet users, Ledger Recovery Key does not require identity verification or the collection of personal details, as Ledger Recover does.
Private key recovery by tapping a card
Ledger Recovery Key will specifically allow users to recover access to their assets by simply tapping the smart card and entering a PIN.
Exclusively supporting NFC-connecting Ledger Flex and Ledger Stax wallets, Ledger Recovery Key connects directly to Ledger devices using secure NFC wireless channels with no intermediary, the company said in the announcement.
The company said that Ledger Recovery Key is built with Secure Element, the main security layer and the same technology applied by Ledger wallet devices.
Open source technology
As part of Ledger’s transparency pledge, the Ledger Recovery Key’s application code is open-sourced on GitHub and has its own white paper.
The tool has undergone internal security testing with Donjon, the company’s white hat hacker team, and has been externally audited by cybersecurity firm Synacktiv, among others.
“We’ve received extremely positive feedback from security researchers and industry leaders, and we’re excited to reveal it to the world for even more feedback ahead of its launch soon,” Ledger’s chief technology officer, Charles Guillemet, said in the announcement.
Self-custody is not without risks
Ledger’s latest recovery tool aims to improve the usability of self-custody, a form of storing crypto assets like Bitcoin (BTC) without relying on third-party providers.
While allowing crypto holders to “be their own bank” by giving users sole responsibility for secure storage of the private key to access their assets, self-custodial storage solutions have long been associated with risks such as key loss or theft.
Many companies have tried to solve this problem by introducing seedless self-custodial wallets, or physical backup solutions like fire-proof metal plates or more sophisticated backup methods such as Shamir Backup.
Related: Crypto user attacked in France over Ledger hardware wallet — Report
In 2023, Ledger introduced another option for recovering keys, a paid cloud-based solution called Ledger Recover. The service was temporarily paused amid backlash from the community due to concerns about third-party entities, but has continued operating.
Despite a tough start, according to the company, Ledger Recover is performing well and continuing to grow as more new users enter the Ledger ecosystem.
Magazine: WeChat friends help crypto thieves, Korbit denies hack: Asia Express
