Ledger’s New Proof of Identity Aims to Stop Billion-Dollar Hacks

Ledger

Ledger’s new Proof of Identity security system goes beyond crypto wallets to fight AI deepfakes, prevent billion-dollar hacks, and redefine how digital trust is verified online.

A few months ago, I received a message from someone who looked exactly like a friend of mine. The profile photo was right, the tone matched, and even her writing style seemed spot-on.

But something felt off.

A quick video call revealed the truth. It was an AI generated deepfake of my friend, built from her public photos and posts. That moment hit me hard. If I could almost be fooled, how many others already have been?

We are entering an era where identity is under constant attack. Per Morocco World News, with hackers stealing more than $3 billion in the first half of 2025 alone, the future of crypto depends on real-time resilience and not just prevention. Every day, new deepfakes, cloned voices, and manipulated images blur the line between authentic and artificial. The challenge has moved beyond money or data breaches. It is now about proving who is real.

Soon, logging in will no longer mean entering a password. It will mean proving who you are.

As artificial intelligence creates infinite versions of everything, the next evolution of the internet will revolve around proof. Proof of identity, proof of ownership, and proof of authority will replace the old notion of access based on trust alone.

The Security Problem: Trust Is Fraying

Traditional authentication systems like passwords, logins, and centralized accounts were never built for this world. They depend on databases that can be hacked or manipulated. The result is that digital trust is breaking down just as our dependence on online systems grows.

Crypto assets and identity are now converging.

Ownership used to mean money. Today it also means identity, reputation, and agency. Yet the tools for verifying ownership, authorship, and authority have not kept pace. How do you prove who you are, what you own, and that you have the right to act online?

A New Layer of Internet Infrastructure For Security

Technology leaders are racing to build what many call a new layer of the internet, a layer of proof. This layer must authenticate people, verify authorship, and confirm authority through cryptography rather than reliance on intermediaries.

Two philosophies are emerging.

One relies on centralized biometric verification, while the other builds decentralized, user controlled proof. On one side is Worldcoin, co founded by Sam Altman. Its iris scanning device, called the Orb, creates a global human identity network known as World ID. They use the terms “proof of humanness.”

On the other is Ledger, a company that believes cryptographic self custody is a safer and more private path to trust.

Ledger’s Security Announcement: From Crypto Wallets to Digital Proof

For the past decade, Ledger has been known for its small USB style devices that helped people protect their cryptocurrency from hacks. These hardware wallets became synonymous with safe storage for Bitcoin and NFTs.

But the internet has evolved. People are managing far more than digital money. They manage credentials, reputations, and identities that define who they are online.

Ledger’s CTO Charles Guillemet puts it clearly: “Our mission has always been to protect value. But value today is not only financial. It is personal. It is your identity, your access, and your authority.”

Ledger is expanding from a crypto wallet manufacturer into a broader security company focused on digital identity and verification. “Digital identity is about cryptographic proof,” says Guillemet. “You should be able to prove you are a person or meet a certain condition without revealing everything about yourself. That is the next generation of trust.”

At its event in Paris, Ledger introduced a new generation of hardware and software that redefines what trust looks like online. The company’s direction highlights a major shift across the digital world. As crypto moves from speculation to infrastructure, verifying authenticity becomes central.

The key idea is not the device itself but what it represents. Ledger combines secure signing technology with user controlled identity.

“We see this as a game changer,” says Guillemet in our exclusive interview on the new announcements. “Our new Multisig protocol built on top of Safe removes single points of failure. The biggest attacks we analyzed all targeted the frontend or endpoint. With this model, you can govern securely across multiple signers and eliminate the weak spots hackers exploit.”

Ledger claims that the last 5 major crypto hacks could have been avoided, including the major Bybit attack, if this new multisig approach was used.

New Security Vocabulary for Proof: Proof of You and Proof of Authority

Ledger now refers to its hardware as signers, emphasizing their role in authenticating actions rather than just storing coins. The company has also introduced two new ideas: Proof of You and Proof of Authority.

Proof of You verifies that the person initiating an action is real in a digital environment.
Proof of Authority confirms that someone has the permission to act, such as signing a transaction, granting access, or approving a contract.

“These two concepts are essential,” says Guillemet. “Proof of You ensures authenticity. Proof of Authority ensures governance. Together they create a foundation for trust that cannot be faked by AI or stolen through social engineering.”

Security: The New Ledger Ecosystem in Action

Ledger’s updated ecosystem brings these ideas to life. The new Ledger Nano Gen5 acts as a personal authentication device, allowing users to prove identity and ownership without relying on third parties. Paired with the redesigned Ledger Wallet app, it enables people to manage both assets and credentials in one place while keeping private keys fully in their control.

“The Ledger Nano Gen5 is your personal authenticator,” Guillemet explains. “It secures your keys and allows you to sign any transaction or message safely. You can manage assets, identities, and credentials without handing control to a centralized platform.”

Ledger is also expanding its partnerships to strengthen this network of proof. “Our collaboration with 1inch lets users connect directly to a decentralized app from the Ledger device itself,” says Guillemet. “You simply click one button and authenticate. We’re also working with the Solana Foundation to extend the same experience across more ecosystems. Proof should be chain agnostic.”

Why Crypto Security Matters Beyond Finance

Ledger’s broader philosophy is that digital identity is becoming as important as digital money. Passwords and centralized credentials remain vulnerable to phishing and theft. As AI deepfakes become more common, identity theft may become the biggest risk of the next decade.

Ledger’s model is based on self custody, giving individuals the ability to control their verification and proof without relying on major tech platforms. It is the same principle that underpinned crypto’s rise, now applied to the entire digital world.

Enterprise Security and Institutional Proof

The growing institutional use of blockchain has increased the need for trusted systems. Ledger’s enterprise Multi Signature solution lets multiple participants verify large transactions on separate devices. Every approval is confirmed at the hardware level, creating a transparent and auditable record.

This approach brings traditional accountability into decentralized systems. It allows banks, governments, and large organizations to manage assets or credentials securely and confidently without adding friction.

Other Hardware Wallet Players And Security

Ledger is not the only company shaping how people secure their digital value and identity. Trezor by SatoshiLabs and Coldcard by Coinkite each offer different approaches.

Trezor emphasizes transparency through open source software and user friendly design. Coldcard focuses on isolation and Bitcoin only functionality to reduce attack surfaces. Both share Ledger’s belief that hardware remains essential for protecting value and identity in an age of digital risk.

The Future of Proof And Security in the AI Era

We are entering what many are calling the Age of Proof, a time when verifying authenticity will define how trust works online. Artificial intelligence has made creation easier but truth harder to confirm. Blockchain and secure hardware like Ledger devices could become the anchors for authenticity in the digital space.

For younger generations, the idea of owning one’s identity may soon replace logging in through third parties. Control, privacy, and verifiable proof will become the foundation of the next internet.

“Every person will own AI agents on and off chain,” says Guillemet. “Those agents will need cryptographic proof to show they truly represent us. The same security primitives that protect your crypto today will protect your digital life tomorrow.”

The internet of the future will not be defined by likes or followers. It will be defined by verification. Ledger’s transformation from wallet maker to proof provider reflects a larger movement across technology. Whether protecting money, information, or identity, the goal is the same: to build trust in a digital world where authenticity is the ultimate asset.

In a security focused world, ownership equals proof, and proof equals power.