Ledger Did What?

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.

Here’s Ledger’s comeback thread

But we think @web3_Phil has a balanced take on this

Lootbringer’s take

We might be getting our blood hot for no reason on this one for 2 reasons.

  1. It’s an optional service. Don’t have to take the privilege of giving them $10/mth for the service.

  2. 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

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