Cardano Founder Charles Hoskinson Reacts to Ledger Controversy: “Don’t Break Social Contracts”

Charles Hoskinson expresses his stance on Ledger’s controversial ‘Recover’ update.

Charles Hoskinson leaning on a Ledger Nano.
Created by Gabor Kovacs from DailyCoin
  • Ledger recently released an update that sparked controversy. 
  • The update allegedly allowed the company to extract users’ keys. 
  • Community members, including influential figures, opposed the idea. 
  • Charles Hoskinon took to Twitter to express his concerns.

Ledger has found itself at the center of unwanted attention, facing intense scrutiny from all corners of the crypto space over its recently launched controversial Ledger Recover service, which sparked speculation of a backdoor in its hardware wallets. 

To complicate matters even further, the security enterprise claimed in a now-deleted tweet that it has always been possible for the company to extract users’ keys, inadvertently digging its own grave. 

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Despite Ledger’s best efforts to “recover” from the damage and denying its previous claims, the security solution provider is still met with staunch opposition from the community, including Polygon Labs’ Mudit Gupta and Binance’s Changpeng Zhao, who strongly criticized the update.

Even the self-appointed spokesman of the crypto community, Charles Hoskinson, paid his condolences to Ledger and shared his thoughts. 

Hoskinson Chimes in

On Friday, May 19th, Cardano Founder Charles Hosksinson took to Twitter to express his stance on Ledger’s controversial ‘Recover’ update. Hoskinson emphasized crucial points aimed at enhancing security and trust in hard wallets.

The crypto influencer urged users to opt for open-source software over closed-source solutions like Ledger. Hoskinson highlighted that open-source software undergoes regular audits by developers and contributors worldwide, ensuring decentralization, higher security, and transparency. 

Hoskinson also stressed the significance of simplicity in security solutions. The founder shared that security came from simplicity and called for decentralized update processes to enhance overall security further. 

The 35-year-old addressed the motivations behind buying hardware wallets, emphasizing that people primarily seek to maximize the security of their funds rather than prioritize daily usage or user experience like hot wallets. 

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Hoskinson further highlighted that the hardware wallet industry is an exceptional example of extreme self-custody. He underscored that while alternative methods like encrypting seed phrases and storing them in email accounts exist, users use hardware wallets to rest easy, knowing that their private keys are protected in a tamper-resistant environment. 

In what may have been a subtle warning, the founder concluded his tweet by asserting the importance of upholding social contracts. Charles Hoskinson urged companies like Ledger to honor their promises to their customers regarding security and privacy and reinforce the trust in the crypto wallet ecosystem. 

On The Flipside

  • Trezor capitalized on Ledger’s downfall, tweeting, “Did you know that the ‘O’ in ‘TREZOR’ stands for ‘open-source.”
  • After drawing security concerns about Cardano’s EUTXO model, Charles Hoskinson addressed the criticism by labeling them “ignorant.” 

Why This Matters

As Charles Hoskinson suggests, hardware wallets are the highest form of crypto security. As an industry leader, Ledger’s slip-up could affect trust in other security providers and the overall industry. 

Look for crypto hardware wallet alternatives here: 

12 Best Crypto Hardware Wallets to Explore

Read more about Cardano: 

Cardano Gears Up to Catch Ethereum as it deploys 1K Smart Contracts in 2023

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.