Metamask's parent company ConsenSys released updated privacy policies.
Users expressed concern about tracking and centralization, with some considering ditching decentralization entirely.
MetaMask has around 21 million active monthly users.
On November 23, the company behind MetaMask Wallet, ConsenSys, announced that it will begin collecting users’ IP addresses and Ethereum wallet addresses during on-chain transactions.
The announcement has sparked outrage in the web3 community, with some threatening to boycott Consensys' services. So, let's first understand whose IP addresses will be collected.
Whose IP addresses will be collected?
So, first and foremost, not all users' IP addresses will be collected; only those users' IP addresses will be collected who utilize Infura as their primary RPC network in Metamask.
However, if users use their own Ethereum node or a third-party RPC provider with MetaMask, neither Infura nor MetaMask will gather users' IP addresses or Ethereum wallet addresses.
Infura is a blockchain tooling and API development firm that was acquired by Consensys in October 2019. RPC is a software communication protocol that allows web3 applications to remotely connect with blockchains.
What could be the possible intention behind collecting users’ IP addresses?
As we all know, decentralized service providers account for 75% of all cryptocurrency hacks. As a result, ConsenSys released these new guidelines to prevent such hacks from occurring.
According to ConsenSys, information gathered in this manner may be provided to affiliates, during business transactions, or to comply with Know Your Customer and Anti-Money Laundering obligations imposed by law enforcement.
This as a result will safeguard users holding in their respective wallets, however, several community members opposed the move. For example, Adam Cochran, a partner at Cinneamhain Ventures, stated:
“Nothing is more important than consumer privacy, especially when it comes to financial information - you have the right to remain anonymous. For a long time, Metamask has given an excellent free service, but their decision to log IP addresses and associate them with transactions is unethical.”
However, others argue that those criticizing ConsenSys should blame themselves for failing to maintain their own infrastructure.
Conclusion
MetaMask is not the only decentralized project that collects users' data. Uniswap, a major cryptocurrency exchange, has also begun collecting user data such as browser and hardware information. The decisions were made after concerns about the operation of cryptocurrency exchanges were raised.
MetaMask is currently one of the most popular non-custody wallets on the market, with over 21 million monthly active users. And the move will definitely rebuild users’ faith in the crypto service providers.
What are your thoughts on ConsenSys' updated privacy policy? Share your views in the comment section below.
Read also: Is Metaverse Really The Future We Want? Lets Talk About Metaverse Adoption!
