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- 1 Cardano founder shares his thoughts about the Ledger controversy.
- 2 According to him, hardware wallets generally enhance the personal security of user’s funds.
Charles Hoskinson, the founder of Cardano blockchain, spoke about the Ledger controversy. On May 19th, Hoskinson shared a tweet in which he clarified about the hardware wallets. He said people buy hardware wallets to enhance the personal security of their funds.
Cardano’s Hoskinson Discusses “Ledger Controversy”
In the twitter thread, Charles Hoskinson suggests to choose “open source software,” as whenever possible, that must be audited by multiple sources on a regular basis. He further continued that “security comes from simplicity so you should design the smallest possible footprint.”
Hoskinson said that “social contracts shouldn’t be broken as they are the epitome of the consumer and company relationship.” As security is the main purpose and it should be kept in mind while designing this type of wallet.
Notably, this “ledger controversy” started when the Ledger, a Paris-based hardware wallet manufacturer, launched the new product called “Ledger Recover.” It is an optional paid subscription service which helps its user by providing a backup for their Secret Recovery Phrase. A secret recovery phrase is basically a unique list of 24 words that backs up the private keys and gives access to you for your crypto assets.
While backing up a user’s secret recovery phrase, it duplicates, encrypts and fragments users private key into three parts. These encrypted fragments are then sent to three independent providers namely, Ledger, Coincover, and EscrowTech. Here was the issue for which it is facing backlash.
People are concerned about these third party websites. They think it will give the company a potential backdoor for obtaining user data.
Moreover, the Executive Chairman of Ledger, Eric Larcheveque, also shared a tweet in which he noted his “personal educated opinion.” His opinions were related to “closed source, open source, and chain of trust in a hardware wallet.”
Changing the Ledger controversy into a competitive edge, the Ledger’s rival GridPlus has decided to open-source its firmware in Quarter3. However, the whole controversy can be said from the analyst point of view. Because the controversy is all about misconceptions, confusions, and miscommunication. The Ledger has said it has an optional service so it is not compulsory to everyone.
Swiss Fintech Platform Coming on “Cardano Blockchain”
Last week, on May 19th, a Swiss Fintech platform, Acredius, announced its collaboration with Cardano foundation. With this collaboration, the fintech platform will bring the power of blockchain to fintech. As it added, “it will deploy smart contacts on the Cardano Ecosystem that will support the growth opportunities for SMEs.”
According to Cardano feed, this collab “will allow the investors of Acredius to use ADA to invest in SMEs.” Meanwhile, the fintech platform also allows for the tokenization of loans. This could spark further adoption of the ADA token that provides new impetus for its value to rise in near future.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
