I’m exploring self custody using hardware wallets. The intention is so that I don’t have to keep the Bitcoin on centralized exchanges, anf I don’t loose the Bitcoin if the exchange goes bust or runs away.
Hardware wallets promise to solve the problem of having to trust an external party (an exchange in this case) by providing self custody.
However, the more I research about this, it seems like we must trust the hardware wallet manufacturer.
Let’s take an example of Ledger hardware wallet. Ledger firmware is closed source, and they are quite open about the fact that they have closed source firmware and are able to export the keys (if user chooses to opt for that feature). So there’s nothing for users to verify whether the hardware wallet is maliciously:
- Generating pre seeded keys
- Exporting keys
So technically it doesn’t solve the need to trust an external party. Therefore it isn’t self custody in the real sense.
What is the industry standard approach for trustless self custody?
