Open source: Buzzword or real security for crypto wallets?

cointelegraph.com:

Last month, hardware crypto wallet manufacturer Ledger announced its “Ledger Recover” program designed to allow customers to back up their seed phrases to the cloud and link it with their real-world identity.

The announcement was met with heavy pushback from the crypto community, as many saw it as opposing the ideals of blockchain security and the decade-old mantra of keeping custody over one’s own keys.

Ledger responded swiftly, assuring customers that their seed phrases were safe and that the Ledger Recover program was opt-in. But the entire saga has led to a growing demand for open-source hardware wallets, which could enable the community to rule out any hardware or software backdoors.

Just a week later, Ledger announced that it was accelerating its open-source roadmap. But what does an open-source hardware wallet mean? What are the benefits? And crucially, are they actually securer than their closed-source counterparts?

First, it’ll help to clear up some misconceptions surrounding hardware wallets.

Your wallet doesn't store crypto.

A lot of people think hardware wallets are used to store cryptocurrencies, but in reality, they’re used to store your private keys. All cryptocurrencies exist on the blockchain, and your private keys prove you own your tokens. This is why it’s important to keep your private key, well, private.

Your spare phone isn't a hardware wallet.

Hardware wallet manufacturing is complicated — and for good reason. People use these devices to secure millions of dollars worth of digital assets, and ensuring the safety of customer funds is crucial to building and maintaining a successful hardware wallet brand.

For this reason, various hardware wallet components are typically proprietary, meaning they cannot