|

Cardano founder Charles Hoskinson warns Ledger against breaking social contracts, joins Binance, Polygon execs

  • Cardano founder Charles Hoskinson has reacted to Ledger’s controversy, warning them against breaking social contracts.
  • It comes after Ledger’s recent controversial update that allowed the firm to extract user keys.
  • The idea received backlash from community members, with Hoskinson being the latest.

Cardano (ADA) founder Charles Hoskinson is the latest addition to the list of community members who have attacked Ledger for its recent controversy over the Ledger Recover Service, which sparked speculation of a backdoor in its hardware wallets. 

The matter escalated when the security firm dug its own grave, claiming in a tweet (since deleted) that it has always  been possible for the enterprise to extract users’ keys.

Also Read: Ledger fights customers' “betrayal” claims; could restore increased faith in CEXs like Binance

Cardano founder warns Ledger against breaking social contracts

Cardano founder Charles Hoskinson has demonstrated his stance concerning Ledger’s controversial “Recover” update in a tweet.

Hoskinson’s post, intended to enhance security and trust in hard wallets, urged users to go for open-source software instead of closed-source solution like Ledger. In his opinion, developers and contributors perform regular audits on open-source software in an effort to ensure decentralization, maximum security, and utmost transparency.

Further, he echoed the importance of simplicity in security solutions, sharing that simplicity breeds security.

Hoskinson advocates for decentralized update processes to maximize overall security

Hoskinson also highlighted the motivations behind buying hardware wallets, insisting that individuals mainly seek to maximize the security of their funds when what they should be doing is prioritizing daily usage or user experience (UX) like hot wallets. As part of his argument, the hardware wallet industry is a good example of extreme self-custody, underscoring that while alternative methods such as seed phrase encryption and storage in email accounts exist.

Users use hardware wallets to rest easy, knowing that their private keys are protected in a tamper-resistant environment.

The Cardano executive concluded his remarks with assertions of the importance of upholding social contracts, urging Ledger and related companies to honor promises made to customers concerning security and privacy as these reinforced trust within the industry.

Cardano founder among industry leaders against Ledger’s controversy

Cardano’s Hoskinson is not the only crypto executive that has addressed the controversy. Others, including Binance (BNB) CEO Changpeng Zhao and Polygon Labs’ (MATIC) Mudit Gupta also criticized the update strongly.

Also Read: Why Charles Hoskinson believes algorithmic stablecoins are key to realizing Satoshi’s vision of Bitcoin

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

More from Lockridge Okoth
Share:

Editor's Picks

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

Ripple bulls build new support base amid RLUSD payments expansion

Ripple ticks up for the second day in a row on Friday, trading at $1.34. The remittance token holds above medium-term structural support; however, strong supply near $1.40 caps upside. A break above this area would reinforce the bullish grip.

Busy week for Ripple’s RLUSD: What changes for stablecoin holders?

Ripple’s RLUSD is gaining ground across institutional finance, with a major bank launching custody services, a new wallet integration making it easier for developers to build payments and agentic experiences on the network, and a brokerage platform planning to use the stablecoin for settlement.

Bitcoin Weekly Forecast: Macroeconomic headwinds, cooling demand cap BTC gains

Bitcoin extends its correction this week, trading below $82,500 on Friday, as selling pressure continues. Hotter-than-expected US CPI and PPI data point to broader inflation pressures and persistent geopolitical uncertainty, weighing on risk sentiment.

Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains
Bitcoin (BTC) extends losses this week, trading below $82,500 as of Friday as selling pressure continues. Weakening institutional demand supports this pullback as BTC spot Exchange-Traded Funds (ETFs) are on track to record a two-week withdrawal streak, reaching $146.19 million in net outflows through Thursday.