Ledger Did What?
Mark Kennedy & Manuel Olumorin
May 17, 2023
GM GM. It’s Lootbox welcoming you to the day that marks 50% mission complete for the week.
For today
Ledger Recovery sparks backlash
New ERC token standard
The Sneakies
Ledger Recovery Sparks Debates
Ledger, the hardware wallet maker, wants to be the bank of tomorrow with their new move - Ledger Recover.
But it looks like they broke commandment 1 of crypto, “not your keys, not your crypto”, when you look at Twitter.
So what’s Ledger Recover anyway
Here’s what we know
Ledger Recovery is an optional subscription service that allows you to recover your keys with identification. It’s brought to you by Ledger and Coincover.
It does this by creating an encrypted backup with the pre-BIP39 version of your private key, sharding it into 3 fragments, then storing each shard at 3 different entities.
When needed by the user, the private key is reconstructed on the chip of the Ledger device after ID verification.
There is a $50k compensation that has been added in case something goes wrong. Giving me FDIC vibes.
All well and good, right? Nah
Here’s what Twitter had to say.
If you have a ledger, your keys are not compromised (yet). But if you upgrade to the latest firmware, it’ll stick in a code path that can send your private key to third parties. Given ledger doxxed their own customers in the past, it’s unlikely that they’ll keep this info safe
— foobar (@0xfoobar)
May 16, 2023
#Ledger#ledgerrecover
Don't Use Ledger Hardware Wallets— Matthew R. Kratter (@mattkratter)
May 16, 2023
PSA: Don't update your @Ledger hardware to version 2.2.1
Don't enable the new 'Recover' feature.Unless you want your crypto to be easily confiscated by government agencies.
Seriously, WTF @Ledger?
Why even bother with a hardware wallet if you're going to do this?— Vanessa Harris (@technologypoet)
May 16, 2023
Here’s Ledger’s comeback thread
You need to approve the service on your Ledger, otherwise the backup is never created. This is why we have secure hardware and a secure screen - trust your device.
There's no backdoor to a backup.
— Ledger (@Ledger)
May 16, 2023
But we think @web3_Phil has a balanced take on this
Looks like @Ledger wants to transform into the "bank of tomorrow".
If you're unsure about the consequences, read this thread to understand why. 🧵👇🏻
(1/10)
— Phil (@web3_Phil)
May 16, 2023
Lootbringer’s take
We might be getting our blood hot for no reason on this one for 2 reasons.
It’s an optional service. Don’t have to take the privilege of giving them $10/mth for the service.
It is good for adoption. Not many people what the responsibility of knowing that a huge amount of funds is dependent on their carelessness.
New ERC Token Standard Set To Make Waves
We all know the power of ERC-721 tokens, but they do come with a few limitations.
Limited traceability and lack of composability have been hurdles in fully realizing the potential of these unique digital assets.
But fear not! The innovative ERC-6551 standard is here to change the game.
So, what exactly is ERC-6551?
It's an emerging Ethereum standard that introduces the concept of token-bound accounts (TBAs) to NFTs. These TBAs provide NFTs with an interface and registry for smart contract accounts, opening up a whole new realm of possibilities.
With ERC-6551, NFTs can transcend their static nature and become more dynamic and interactive assets. By converting the asset into a token-bound account, NFTs gain the ability to perform on-chain actions and record all activities in an unalterable fashion.
The control of these TBAs is delegated to the NFT's owner, empowering them to initiate on-chain actions on behalf of the NFT.
What does it bring to the table?
Let’s take a look at a few specific new features that developers can now explore with this new token standard.
On-chain identities
One of the most intriguing possibilities is the creation of on-chain NFT identities. NFTs with token-bound accounts can have their own wallets and associated assets, interacting with dApps directly.
This opens up opportunities for behavioural economics-driven airdrops, loyalty programs, and in-game rewards. A better way to interact with players directly is through their NFTs.
Intuitive asset management
Intuitive asset management is another advantage of TBAs. Different types of assets, including NFTs and POAP rewards, can be stored in a TBA, allowing for seamless transfer and switching between platforms. Say goodbye to the hassle of managing multiple wallets and enjoy a more intuitive user experience.
Endless possibilities for game devs
The composability of token-bound accounts unlocks exciting gaming use cases. Developers can create "inventories" for players, automatically transferring assets into their character's wallets. This improves the user experience and enables the creation of in-game UIs that were previously challenging to implement.
The Sneakies
It’s looking like Sky Mavis Day, as they dropped 2 big announcements. First, Axie broke into the Apple App Store, and that’s not a small fit, with Axie Infinity Origins launching in countries in South America and Asia. Also, it launched the Mavis Market, its first generalized NFT marketplace.
Animoca has joined hands with Hooked to provide “edutainment” content for web3 in a gamified learning format.
James Ho of Animoca Ventures sees gaming console makers getting involved in web3 stating they never cared about F2P until it grew to multimillion users.
A startup backed by a16z, Rooms.xyz, is building a browser tool for designing 3D spaces using drag and drop, editable objects or code that users can use to build basic games.
Tweet of the Day
Never get scammed again with this one simple trick:
— PLATO (@PlatoNFT)
May 16, 2023
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