ConsenSys’ MetaMask will solve privacy issue tracking user data

• MetaMask co-founder Dan Finlay explained that the platform partnered with Infura to share IP-linked transaction data in 2018.
• Concerning the option for privacy-conscious users to bypass Infura to retain their privacy, ConsenSys warned that this alternative may not provide more privacy.

The company behind the MetaMask crypto wallet, ConsenSys recently disclosed that it collects data related to user identification including contact details, profile information, etc. This came after decentralized crypto exchange (DEX) Uniswap made a change to its privacy policy to include a similar update. In addition, an update to the ConsenSys user agreement last month revealed that it automatically shares user internet-protocol information with Infura.

This triggered concerns among the crypto community members on Twitter who likened the move to a privacy invasion. Following the backlash, ConsenSys has assured that it would release a series of updates to the platform. According to the company, it will only collect wallet and IP address information when users facilitate transactions through Infura’s Remote Procedure Protocol (RPC) endpoint.

We do not store wallet account address information when a MetaMask user makes a ‘read’ request through Infura, for example, to check their account balances within MetaMask.

ConsenSys to update the MetaMask interface

MetaMask co-founder Dan Finlay explained that the platform partnered with Infura to share IP-linked transaction data in 2018. This was meant to avoid network overload and monitor pending transactions. This move has been flagged as a violation of Ethereum’s privacy-focused decentralized ethos and has been confirmed by Finlay.

By being increasingly clear about exactly how data was managed by various ConsenSys products, there were some valid critiques and concerns raised – especially by people who ultimately have the highest privacy standards.

According to Finlay, users who interact with RPC services like Infura would have their IP addresses always visible. Meaning MetaMask cannot stop logging IP addresses completely. The company has decided to stop logging user IP information directly in addition to their transaction data to make it difficult to trace transaction activities to specific users. 

ConsenSys also disclosed that it would update the MetaMask interface. Previously, users were given the option to configure their MetaMask to bypass Infura. This was done by creating an Ethereum node or configuring a non-Infura RPC service. However, this was said to be difficult to implement. Very soon, a new advanced settings page would be introduced to enable new users to choose their RPC providers at onboarding. In addition, they would have the liberty to opt-out of third-party services. 

Concerning the option for privacy-conscious users bypassing Infura to retain their privacy, ConsenSys warned that this alternative may not provide more privacy.

Alternate RPC providers have different privacy policies and data practices, and self-hosting a node may make it even easier for people to associate your Ethereum accounts with your IP address.