Consensys’ Metamask: Updates Raise Privacy Concerns
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The company says it collects consumers’ IP addresses and Ethereum wallet addresses when they send a transaction. The new policy applies to those using Infura as the default Remote Procedure Call (RPC) provider in MetaMask.
“Information collected by Infura when you use Infura as the default RPC provider in MetaMask… When you use Infura as the default RPC provider in MetaMask, Infura collects your IP address and Ethereum wallet address when you send a transaction.”
Customers using their own Ethereum node or a third-party RPC provider are not affected by the new rules – their IP and MetaMask addresses are under their control, as stated in Consensys’ official post.
New tools may not be welcome
Infura is a key project in the Ethereum ecosystem. Focusing on Web3 decentralization, Infura provides a set of critical tools for developing dApps on Ethereum without the need for sophisticated infrastructure.
Developers can leverage API Infura Ethereum to minimize code overhead, making it easier to build dApps on the blockchain.
Consensys’ decision marked a significant change in the fight against economic crime. According to the team, the collection of databases must comply with existing Know Your Customer (KYC) and Anti-Money Laundering (AML) legislation.
ConsenSys also intends to use the information provided by users to contact them in the future regarding offers, events and other news related to the company’s products and services, with the aim of optimizing the platform.
Some people are not happy
The announcement has caused great outrage in the cryptocurrency community. Most customers resist the idea that a company can track all transactions in and out, regardless of whether they are justified.
Customers have had to consider maintaining transactions with the MetaMask wallet as privacy is now a major concern. Some recommend switching to other Infura options, while others consider switching wallets.
In addition to the policy update, criticism has revealed the long-awaited metamask of the MetaMask administration token.
Last year, MetaMask founder Joseph Lubin hinted at the possibility of launching a wallet token. People began to question whether the previous news was a tactic to attract more users to the Metamask wallet since no progress had been made.
AML: Decentralization impasse?
UniSwap does not collect data or store personal information, but may share wallet addresses with analysts to detect and prevent financial crimes.
People prefer centralized finance over decentralized finance. Even with cryptocurrencies that were originally meant to be decentralized, most people choose to hold their money using the CeFi protocol.
When the FTX exchange collapsed, this general mindset began to change. FTX was a major centralized cryptocurrency exchange.
The catastrophic event has attracted more and more people to decentralized protocols. During the storm, trading on decentralized exchanges increased significantly, according to blockchain analytics firm DeFi Llama.
Most DeFi initiatives operate independently, but they are also controlled and controlled by individuals or groups such as centralized companies.
Projects have groups that serve as a board or development team, making critical choices that determine their future direction. And it seems impossible that these companies would not be held to the same standards as institutions when it comes to money laundering and compliance.