Ledger Wallet’s New Feature Allows for Passcode Recovery

Ledger Wallet’s New Feature Allows for Passcode Recovery

Weighing out the risks and benefits between anonymity and security has always been a delicate matter, and that same principle is causing Ledger Wallet’s latest “improvement” to be extremely controversial.

According to the crypto community, the hardware wallet manufacturer recently unrolled a new feature that’s causing the stir. This feature allows users to recover lost or forgotten recovery phrases. On the positive side, this feature provides a much-needed service for crypto users who wind up forgetting these phrases and losing access to their valuable crypto. On the flip side, many crypto users are calling into question how Ledger Wallet would be able to safely implement this type of service without putting their user’s security and privacy at risk.

The reason opponents of this new feature feel this way is because Ledger Wallet would need to store those recovery phrases in order to recover them later.

Ledger Wallet has responded to users’ concerns by reassuring customers that the service will be safe and secure. According to the company, the recovery phrases will be held in an encrypted form. Further, it will be split up into multiple parts and stored by different parties. The company also stated that the service will require users to verify their identities before they’re able to move forward with the recovery process.

Ledger Wallet also said this new recovery effort should be seen as a last resort for users who have no other way to access their funds.

One of the biggest arguments against this process, however, is that cryptocurrency and digital wallets are supposed to be decentralized and individually held. With the service holding onto recovery phrases, cryptocurrency users fear the service will result in an increase in phishing, hacking, and social engineering attacks.

Opponents of this new service argue that a better solution lies in properly educating more cryptocurrency users about how to store and backup their recovery phrases on their own. That way, the wallet manufacturer isn’t expected to step in or store the phrases.

Have You Ever Lost Access to a Digital Wallet?

There’s a great reason why so many cryptocurrency users are advocating for this new feature. When you lose access to a digital wallet by forgetting a recovery phrase or passcode, it can be extremely complicated to regain access to your accounts. In many cases, you might lose access to your Bitcoin or cryptocurrency forever.

If you find yourself in this type of situation, then our team can help. Over the years, we’ve resolved over 30 complex cases, helped over 100 customers, and recovered over 2,000 Bitcoins by utilizing our top-tier recovery strategies. Our team can help with forgotten passwords, old wallet versions, funds that are lost in forks, cryptocurrency that got stuck by getting transferred to an invalid address, and more.

We understand how stressful it feels to think you’ve completely lost access to your valuable digital assets. Let us help you get back on track. Contact our team now by calling us at (800) 821-0520 or filling out our online form.