‘If not self-custody, then why crypto?’ — Ledger CEO

As a seasoned analyst with years of experience in the digital asset space, I wholeheartedly agree with Pascal Gauthier’s stance on self-custody being the essence of cryptocurrencies. Having witnessed numerous hacks and breaches in centralized exchanges over the years, it is evident that true decentralization lies in personal control of one’s digital assets.


Despite new developments in the digital asset space, such as the launch of spot Bitcoin exchange-traded funds (ETFs), Ledger CEO Pascal Gauthier believes that self-custody is still the point of cryptocurrencies. 

During the Blockchain Life conference held in Dubai, Gauthier expressed to CryptoMoon in an interview that while platforms like exchanges and ETFs serve distinct purposes within the crypto sphere, the essence of cryptocurrencies remains self-custody. In simpler terms, he emphasized that user control over their own digital assets is the crux of the crypto system.

“If not self-custody and why crypto? There is no crypto without self-custody, so it’s a bit of a moot point if all coins go to an ETF or an exchange. There is no crypto.”

Furthermore, Gauthier emphasized that Bitcoin’s whitepaper presents the digital currency as a decentralized payment system directly between individuals rather than banks. As he explained, “It’s person-to-person; it’s not bank-to-bank. It’s to eliminate intermediaries.

‘If not self-custody, then why crypto?’ — Ledger CEO

Ledger CEO on why hardware wallets need to evolve

Beyond just personal control, the CEO of Ledger emphasized the importance of hardware wallets adapting and growing to match the rapid advancements occurring within the field.

Gauthier shared with CryptoMoon that just like mobile phones, hardware wallets will keep advancing in technology. Specifically, he elaborated on this point:

“The reason why it has to evolve is because crypto never sleeps. There are layer-2s, and an application layer is now being built on top of public blockchains. And so, your hardware wallet will have to be more and more sophisticated.” 

Gauthier pointed out that Ledger isn’t only focusing on safeguarding cryptocurrencies, but also the digital aspects of our everyday lives on the internet. Essentially, your Ledger device will function as a security tool to shield your confidential information, whether they pertain to cryptocurrencies or simply online data. This is the gist of his explanation.

On the 26th of July, Ledger unveiled their latest offering – the Ledger Flex. Notably, at the launch event, Gauthier claimed that these devices are the only ones worldwide to boast secure touchscreens.

Why the space needs to move away from blind signing

On August 21st, an enormous player in the cryptocurrency market, known as a “whale,” inadvertently lost $55 million. This happened when they approved a transaction that transferred ownership of their stablecoins at the Decentralized Finance (DeFi) platform Maker to unscrupulous individuals. The signed transaction provided these malicious actors with control over the funds.

As a crypto investor, experiencing such incidents underscores the importance of enhanced security within our digital asset space. Just like Gauthier, I advocate for transparent verification processes and encourage fellow investors to refrain from blindly confirming transactions.

He explained why Ledger’s new products have bigger screens: 

“Clear signing is a big initiative. This is why those products, Ledger Stax and Ledger Flex, have bigger screens; you need to see what you sign on a secure screen.” 

According to Gauthier, it’s important for the industry to stop relying on blind agreements and instead, he mentioned their collaboration with various organizations to advocate for and educate the sector about transparent signings.

Everyone in the field routinely engages in a practice called blind signing, which can be quite surprising since it’s similar to endorsing empty checks on the internet,” he noted.

Read More

2024-10-23 14:37