Cryptocurrency wallet maker Ledger has released a new multisig feature. According to its announcement, the company has announced the introduction of fees per transaction, a development that has drawn backlash from many crypto users and developers.
The feature, which was released on Thursday alongside the new Nano Gen5 device and an upgraded Ledger Wallet app, replaces the old Ledger Live application. The multisig feature is the first integrated system developed by Ledger, with the firm allowing multiple people to sign and verify transactions. The company noted that this process is handled through the company’s backend instead of relying on third-party tools. Previously, users relied on Specter or Sparrow to handle multisig transactions on Ledger hardware wallets. Unlike Ledger’s integrated multisig feature, Specter and Sparrow are open-source tools available for anyone to utilize or fork.
Ledger unveils new multisig feature
Ledger has now announced a “Multisig Fee” on top of network fees. The fee is broken down into two parts: a $10 flat fee for standard crypto transfers and a variable fee of 0.05% on token transfers. “Ledger charges a fee for the secured and facilitated access it provides to these services through Ledger Multisig (‘Transaction Fee’),” Ledger said on its website’s FAQ section. Developers and security researchers across the crypto sphere have criticized the move, calling it unnecessary and profit-driven.
Pcaversaccio, a developer and security researcher from SEAL-911, said Ledger’s new model turns users who want the multisig feature into a revenue stream. He said the feature turns multisig users into “cash cows.” Pcaversaccio described Ledger as a “single choke point for all crypto so you can squeeze everyone through it.” This approach goes against Ledger’s cypherpunk origins. Sarnavo, an Avalanche ecosystem dev, said the whole crypto community is “frustrated” because of the new upgrade.
He listed other problems, such as Ledger’s closed-source user interface (UI). Crypto users have no way to verify transaction signing, how data moves, or what is being stored on Ledger’s backend servers. Sarnavo also pointed out a hidden transaction service used for coordinating multisig signatures. Ledger did not disclose the type of data the server handles, which leaves users clueless about their privacy.
Ledger released the new multisig feature along with clear signing on new devices. However, the original Ledger Nano S is left behind and will not receive those updates because it lacks the required memory storage to convert complex transaction data into readable text. Ledger released the new features alongside its Nano Gen5 device on Thursday. The upgraded hardware wallet is priced at $179, way higher than the older Ledger Nano S, which previously sold for around $59.
According to the company, the Nano Gen5 is more than a hardware wallet. It acts as a “signer” designed to handle identity verification and transaction approvals in what Ledger calls the artificial intelligence (AI) era. The Nano Gen5 also comes with new features such as an E-Ink touchscreen, Bluetooth 5.2, USB-C connectivity, and enhanced security chips. Ledger has sold over 6 million hardware wallets, helping crypto users secure billions of dollars. The company did not release any official comments or respond to the backlash from the crypto community.
