How Does Ledger Nano X Work?
Let us remind you that a cryptocurrency is cryptographically protected digital money that is stored in a distributed database, a blockchain, and does not depend on any state in the world.
To find and use the desired digital wallet with cryptocurrencies in the database, you need keys. And so that they do not get lost and fall into the wrong hands, special gadgets – hardware wallets – are needed.
Ledger Nano X is one such wallet. It was developed and produced by the French company Ledger, which has been dealing with gadgets for working with crypto coins since 2014. So effective that it's worth $1.5 billion today.
Looking at Ledger Nano X, you will not say that this is the key to huge wealth. The device looks simple, like a premium flash drive: a polished stainless steel cover, and there’s a plastic case with an OLED display under it. Presumably, the discreet appearance of the wallet is also a part of the protection: there are fewer risks that a pickpocket will like this gadget.
Hardware wallets work with computers by default. Ledger Nano X can easily connect to everything: to Macbooks and PCs (on Linux and Windows) via USB-C, to smartphones on iOS and Android via Bluetooth and wire. You are able to use the device wirelessly, because it has a small battery of its own.
How to Transfer Crypto to Ledger Nano X?
This is an excellent device for those who invest in a new asset, trade, and simply make transactions. Cryptocurrencies are a difficult area to enter. But using the Ledger Nano X is simple, anyone can do it. Actually, it is difficult to make a mistake if the device has only two buttons.
When the wallet is enabled, they move you through the menu. Pressing them simultaneously confirms the selection. It's a rather clunky system, and would have been more comfortable with at least three buttons or a touch screen. Luckily, most of the transactions still happen on the Ledger Nano X Live mobile or web app, so you can get used to this feature.
The application itself has a nice design and simple interface. After connecting, Ledger Nano X Live carefully guides the user through all the points and helps to understand the wallet interface in detail.
An important point: wallet data can be restored if lost, knowing its recovery phrase. And it must be written down on a piece of paper in the kit, and it is also desirable not to lose it. A typical problem in the world of cryptocurrencies is how not to forget the password for all your fortune. The answer to this question and many others can be found in the extensive Ledger help system, which covers topics that are relevant for beginners and advanced users.
What Are Ledger Nano X Supported Coins?
Of particular note is the list of supported cryptocurrencies and tokens, of which there are already more than 5 thousand, including the mandatory Bitcoin, Ethereum and Bitcoin Cash. No one person will be able to use them all, but you can try to collect a large collection: Ledger Nano X has enough space for 100 applications. Not bad for such a small gadget. For beginners, it is especially valuable that Ledger Nano X has partnered with Coinify, so that you can buy cryptocurrency directly through this platform and take your first steps on the blockchain without too much headache.
Advanced users will like the integrated support for decentralized finance services – DeFi. This is a separate big topic: let's just say that the DeFi boom came in the summer of 2020. These services include lending, equity issuance and asset management, all without the involvement of intermediaries and financial institutions.
How Is Ledger Nano X Secured?
For Ledger Nano X, security is the number one issue. Ledger Nano X can only be hacked under ideal conditions, which hackers usually do not have. It all starts with the security of every new device. Ledger Nano X has developed a system for checking the integrity of wallets: a hacked device will not be able to connect to the campaign server, as it will not pass the cryptographic verification.
The data of the wallet owner, his personal key for accessing assets, are protected by a PIN code, which must be set during initialization. It is very important to initialize and configure each new wallet on your own – which Ledger Nano X will remind you more than once.
This is followed by a separate secure chip for storing customer data. Ledger Nano X has two chips, a new Secure Element ST33J2M0 and STM32WB55. The latter serves as a proxy between the wallet and the outside world. Client data is stored directly in a secure chip: in fact, keys for accessing assets. They never leave the device.
ST33J2M0 has CC EAL5+ safety certification. In addition, this chip is approved by the French cybersecurity agency ANSSI. You can be doubly sure that a wallet with such a filling will not let you down.
The Secure Element manages the display of data on the wallet screen and accepts user input. Therefore, part of the Ledger Nano X security checks is tied to the display: if it does not display the same thing as on the connected computer or smartphone, then the user understands that the operation needs to be interrupted. Actually, this is how each transaction is confirmed.
A secure Bluetooth connection has been worked out separately. Since this is an insecure communication channel by default, the developers have separately worked it out so that it is safe to use. The connection consists of two stages: the exchange of keys and the actual connection. The Ledger Nano X and smartphone first generate their own key pairs using a random number generator, and then exchange them during pairing using Elliptic Curve Diffie-Hellman cryptography.
To avoid a man-in-the-middle attack, at the last stage of pairing, the smartphone and wallet display a numeric code that the user must verify. And after its approval, the device connects to the smartphone via an AES-encrypted channel. However, the user always has the opportunity to turn off Bluetooth and connect the wallet to the smartphone with an OTG cable, trusting the good old physical connection.
What Is the Difference Between Two Nano Versions?
Ledger has a different hardware wallet model – Nano S. Both devices are equipped with security chips, but different generations, Ledger Nano X has a newer one. Actually, the difference between the two wallets is as follows:
Ledger Nano S
supports from 3 to 20 applications;
connects via USB only.
Ledger Nano X
supports 100 applications;
connects via Bluetooth and USB.
The rest of the functions are almost identical, and the appearance of the device is almost indistinguishable. Both work with Ledger Live, both are secure. When choosing between the two, you need to understand how many crypto assets you want to manage, and whether a wireless connection is so important.
It must be assumed that in the case when the wallet is needed to only access a small list of assets, the Nano S is enough. To juggle dozens of cryptocurrencies and tokens, the Nano Ledger X is ideal.
But in general, the level of security is equally high and they both give odds to hot wallets that hackers have learned to break without much difficulty
