An interesting case study from Ledger: you enable recovery with your ID, but you lose privacy and need to trust the company 100%.
ZKP can help. A custodian gets a key to recover your wallet, but won't know which wallet it is. Combined with timelock recovery, it might just work.
1/ Ledger "Recover," a thread 🧵
Last night Ledger accidentally leaked some info on their new recovery subscription service, and today they revealed the details.
Let's walk through their proposed "solution" to cryptocurrency custody and how dangerous it is.