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Trezor Rides the Wave as Ledger Gets Caught in Controversy


In short: Hardware wallet manufacturer Trezor has seen a 900% increase in week-on-week sales as a result of controversy surrounding competitor Ledger and its key-recovery service. The backlash that Ledger received has seemingly benefitted Trezor, as the latter ensures the seed phrase for hardware wallets is never accessible to anyone but the user. Meanwhile, cybersecurity firm Unciphered recently raised concerns regarding the security levels offered by Trezor's service, but Trezor's CTO Tomáš Sušánka noted that the attack in question would require theft of a device and highly sophisticated technical knowledge.

Our quick analysis:
Hardware wallet provider Trezor has seen a remarkable 900% increase in its sales since Ledger's controversial release of its key recovery service. The backlash from the community against Ledger's service has been a boon for its competitor, Trezor.

Ledger's Recover service, which allows users to store encrypted backups of their seed phrases through three custodians, was criticized by the community for violating users' trust and privacy. While the service was paused to address these concerns, Trezor stepped up to assure its own customers by stating that a hardware wallet must not make seed phrases accessible to anyone but the user.

Recently, cybersecurity firm Unciphered claimed to have found a vulnerability in Trezor's T hardware wallet. However, Trezor's CTO Tomáš Sušánka clarified that the firm had already identified this issue and was working to mitigate it, adding that the vulnerability required physical theft of a device and advanced technical knowledge to exploit.

Despite the controversy, Trezor continues to maintain its commitment to ensuring maximum security for its users. As a fully open-source company, it undergoes regular audits to ensure that its processes remain secure and that remote seed phrase extraction remains an impossibility.

As the world moves towards an increasingly digital economy, hardware wallet providers like Trezor and Ledger will be expected to continue stepping up their efforts to reassure users of their security. For now, Trezor appears to be gaining an edge over its competitor amid the controversy.

Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.

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