Ledger Recover offers an identification-based private key recovery system. It will be launched on October 24th, with the open-source code having been recently finalized and uploaded to GitHub.
This service, provided by the blockchain protection platform Coincover, offers a subscription-based solution to back up what is known as the ‘Secret Recovery Phrase’ (SRP). The SRP consists of a unique list of 24 words that serves as a backup for private keys, granting users access to their assets.
Those who prefer not to use the service can continue using their wallets as usual, without any alteration to their experience.
Initially, Ledger Recover will be compatible with the Ledger Nano X, with plans to integrate it with Ledger Stax and Ledger Nano S Plus in the near future. However, it’s important to note that Ledger Recover is not compatible with the Ledger Nano S, according to the Ledger Recover FAQ.
As for its availability, Ledger Recover will be accessible to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. They intend to expand this availability in the future.
Ledger Recover, provided by Coincover, is launching today! https://t.co/JRl4cLn2tQ
What does this mean, how does the service work, and who is it for?
Scroll down to learn more and sign up👇 pic.twitter.com/Vhdearb5o7
— Ledger (@Ledger) October 24, 2023
Ledger Sets Itself Apart from Other Services
A key point is that the identity verification process of LR is explicitly different from ‘Know Your Customer’ (KYC) checks. Ledger’s recovery system only requires a valid government-issued document and collects considerably less information compared to the comprehensive KYC checks.
The service will be offered through a subscription with a $9.99 cost per month. If the subscription lapses due to non-payment, users will have the option to reactivate it within the following nine months by paying an administrative fee of 50 EUR, along with any outstanding balance.
This launch follows a temporary pause in Ledger’s recovery service in May 2023 due to concerns raised by users.
Ledger’s main competitor, Trezor, has chosen to steer clear of cloud-based private key recovery solutions, instead favoring a physical backup solution in the form of their ‘Trezor Keep Metal’ tool.