Hardware Wallets: Ledger, Trezor Prepare to Protect Coins

Users receive advice to wait it out in the case of a hard fork, not moving their Bitcoin due to potential issues with replay protection. Both Ledger and Trezor outlined the techniques for the November hard fork.

Ledger has issued an official statement on the upcoming hard fork, with a view to protecting the coins of users. Trezor, which was silent until now, also moved in with a new statement on the SegWit2X hard fork.

Ledger recommends an update, followed by a period of voluntarily holding the coins to avoid confusion:

"It’s recommended for all users to update your Ledger Nano, Nano S or Blue to the latest firmware as a new application will be used to split your coins and handle transactions on the Bitcoin-2x chain."

Because SegWit2X will be released without replay protection, both Ledger and Trezor have offered a coin splitting tool. This is yet another technique to prevent double spending- repeating the transaction on both blockchains.

Trezor warned that this hard fork is not the same as the Bitcoin Cash chain split:

"Bitcoin Cash implemented replay protection during their hard fork, meaning the coin splitting process was easier to implement."

Trezor is still working on a guide to manually split coins, while Ledger has offered both non-automatic and fully automatic approaches to coin splitting.

The SegWit2X hard fork comes with the aim of supplanting the legacy chain. Therefore, it is possible for users to exclusively use one of the coins, while forsaking the other and giving up the "free coins". The other option is to split the coins and gain independent access to both digital assets.

Both blockchains will have the same format for addresses, adding to the confusion. Users with both legacy and SegWit addresses will be able to claim assets in the two blockchains after November 16-18.

Trezor and Ledger will continue updating users on the details of the coin splitting process. But the advice of Ledger is to not move the coins for a while:

"The safest course of action if you hold any bitcoins is still to avoid transacting during the event and wait for the dust to settle."

At the moment, there is no predicting how mining would be distributed after the hard fork, and whether both assets would have viable blockchains.