On November 23, Consensys, the mastermind behind MetaMask, unveiled a revised privacy policy.
The The firm highlights the necessity to capture users’ IP addresses. and their Ethereum wallet specifics during any transaction using the default Remote Procedure Call (RPC) provider, Infura, in MetaMask.
To wit,
“Data captured by Infura when you designate it as your go-to RPC service in MetaMask… Infura will secure your IP and Ethereum wallet details during transactional operations.”
Those who choose to operate their personal Ethereum node or an alternative third-party RPC provider manage their own IP and MetaMask identities and remain unaffected by this change, as highlighted in Consensys' official statement.
New Tools May Not be Welcome
Infura plays a pivotal role within the Ethereum world, ensuring Web3 goals of decentralization by offering vital resources to develop dApps sans intricate infrastructure.
Using Infura's Ethereum API helps developers ease the coding load, facilitating smoother dApp creation on the blockchain.
That direction steers Consensys towards bolstering financial crime prevention efforts. The team's stance is that such data collation aligns with Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
Moreover, ConsenSys intends to utilize these user details to initiate future communication regarding offers, gatherings, and fresh updates to refine the platform experience.
Some People Aren’t Happy
The cryptocurrency community's uproar has been palpable, with many opposing assigning transaction oversight to the company, regardless of the rationale.
Rethinking MetaMask wallet transactions has become a necessity for users. since privacy is now a major concern Some are advocating for alternate solutions to Infura, and others are contemplating changing their wallet choices.
Besides the policy revision, critics have exposed the long-anticipated launch of MetaMask's governance token airdrop.
The previous year, MetaMask co-founder Joseph Lubin indicated a forthcoming wallet token launch. However, with little to no advancement afterward, people speculated whether the former hint was a strategy to lure more into the MetaMask wallet suite.
AML: Dead End Of Decentralization?
Following Consensys’ update closely, Uniswap’s decentralized platform also revised its privacy policy, extending to both on-chain and limiting off-chain data collection related to user devices and browser versions.
Unlike collecting and storing personal data, Uniswap’s approach may involve sharing wallet data with analysts to counteract and identify financial misconduct.
Centralized finance often overshadows decentralized finance in preference. Even in its decentralized cradle, countless individuals steer their assets through CeFi avenues.
The significant downturn of the FTX exchange disrupted this consensus. FTX, once a major player in centralized cryptocurrency trading, lost its footing.
Such turmoil prompted a noticeable shift, with blockchain insights from DeFi Llama indicating spiking trading volumes on decentralized platforms during this period.
The shift towards decentralized exchanges culminated in an unprecedented influx of new participants across Uniswap’s applications in 2022. Yet, the newest privacy amendments reveal that several DeFi platforms incorporate elements of centralization.
Autonomy in DeFi projects doesn't negate physical oversight and governance by individuals or collectives, akin to the framework of centralized bodies.
Each project is handled by a group, sometimes akin to a corporate board, guiding pivotal decisions for its trajectory, and mirroring institution-like standards in navigating money laundering and regulatory adherence.
