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Nothing changed my dude, the newest thing is ledger’s support for paypal (PYUSD). It’s not blown over. They are still compromised, in a sense of how many seed shards that are needed to access anyone’s wallet. Currently, a party only needs 2/3 pieces to access any wallet. It sounds like an option that ledger is „offering“, but… it could very well be mandatory later down the line.
The problem with this seed backup proposal is, 1st piece is stored with ledger themselves and the 2nd piece is kept with a „trusted 3rd party“ and the 3rd piece with the owner of the wallet. With the fact that any 2 parties can access any wallet, if that owner has opted for this backup…. that „trusted party“ litterally can be anyone, even the government.
If you look into history alone, the government will take money if given the opportunity.