What Is Clear Signing?

When it comes to staying secure in crypto, there’s one simple ethos to follow: don’t trust, verify. Ledger devices have long stood out as the most popular hardware solution for a decade. They feature a secure screen driven directly by the Secure Element. They also store private keys offline and allow users to verify transactions physically.

That being said, the landscape of digital assets has evolved significantly since Ledger’s inception. With the emergence of new use cases like DeFi and NFTs, transactions have evolved in scope and complexity. Unfortunately, most wallet interfaces aren’t capable of providing users with human-readable transaction information. This leads most users to sign transactions without understanding their full details, something known as blind signing. This is a serious vulnerability that scammers have exploited to siphon billions of dollars from unsuspecting users.

The only way to combat this threat is to implement Clear Signing standards across the industry—something that is much more challenging than it sounds. But before we dive into the details of how Ledger plans to solve it, let’s attack the basics. In fact, what is Clear Signing exactly?

What Is Clear Signing?

Clear Signing is simply the answer to blind signing. To achieve it, you need two things. 

1. Clear transaction intent. The intent should show what kind of approval you’re being asked to sign and which dApp is seeking approval. 
2. Human-readable transaction fields. Transaction fields should show the intended recipient and which of your assets will be affected in a language you understand.

Meeting both of these conditions finally makes it possible for users to get a clear indication of which approvals they are granting, allowing them to make much better-informed decisions on whether or not a transaction is trustworthy. 

Instead of signing a transaction that merely shows you a string of characters, also known as a hash, a clear signed transaction will let you review all of the details before you sign. 

What is Clear Signing For?

Clear Signing is important for one specific reason: helping you avoid signing malicious transactions. 

Many of the most prevalent (and successful) scams utilize blind signing. If you use a hardware wallet, your keys are protected from online threats, so you might think you’re immune to all scams. But let’s make one thing clear: a Ledger device can protect your keys from online threats, but it can’t protect you from making mistakes. If you sign a malicious transaction with a Ledger device, there’s no going back.

Most blind signing scams will try to convince you to sign a malicious transaction, immediately transferring your assets to them, or approving a malicious smart contract function that grants access to a specific asset. Most often, these transactions are disguised via phishing sites or slipped under the radar via social engineering, but the result is the same. Once users are accustomed to signing transactions they don’t fully understand, it becomes possible to trick them into signing something with malicious intent.

 This is a major hurdle and pain point for all users—newcomers particularly. How are you meant to sign with confidence, if you don’t know what you’re signing? Blind signing is simply like writing a blank check to your attacker and currently, that’s many users’ only option.

Clear Signing was designed specifically to put an end to these risks. It allows even newcomers to transact with clarity and security.

Clear Signing in the Ledger Ecosystem

Ledger has a dedication to implementing clear signing whenever possible. In Ledger Live, you’ll find that many of your transactions will provide you with the full details of exactly which assets you are transferring and who to—before you sign. 

The key benefit of clear signing on a Ledger device is its secure screen. Unlike your smartphone or laptop, your Ledger device’s screen is immune to spoofing. Since the screen of your Ledger device is driven directly by the secure element, you can trust the details it shows. This combined with clear signing ensures that what you see is what you sign. Whether you’re using a secure touchscreen on a Ledger Stax or a secure screen on a Ledger Nano S Plus or Ledger Nano X, you can rest assured that the details it shows are authentic.

Ledger’s Clear Signing Initiative

While Ledger has a dedication to Clear Signing, a considerable number of advanced transactions cannot be securely interpreted in Ledger Live today. To achieve widespread adoption, Ledger needs cooperation from the wider ecosystem. That’s why Ledger worked with other leaders and developers in the blockchain ecosystem to propose and implement a Clear Signing standard.

The proposal translates the transaction data using JSON format. This makes it easy for anyone to build apps and wallets that display transaction data in human-readable language.

At the beginning of 2024, Ledger began communicating our Clear Signing standard and tools to key ecosystem partners. Following initial discussions with wallet providers, and dApps, we hosted a Clear Signing RFC Webinar alongside other industry leaders and developers to gather feedback. Find the full details in our developer’s docs here.

This summer (2024), Ledger is releasing the first set of Clear Signing tools. But we won’t stop there. The goal is to distribute Clear Signing across as many apps and wallets as possible, establishing a secure transaction standard.

The Future of Clear Signing

Ledger has been at the forefront of digital asset security for a decade. Our comprehensive approach integrates hardware, software, a proprietary secure operating system, and secure screens in a user-friendly package. This empowers Ledger users to generate and safeguard private keys offline, ensuring peace of mind in an increasingly digital world.

While blind signing is a serious threat, our community can take significant steps to prevent it. With the Clear Signing initiative, the crypto ecosystem can move closer to becoming a safe and secure environment.