MetaMask Is Watching

MetaMask is a cryptocurrency wallet as well as a gateway to blockchain apps. It is available as a mobile app, and a browser extension, and it equips its users with a key vault, token wallet, secure login, and token exchange. It connects you to more than 3,700 apps and there are more than 21 million monthly active MetaMask users, which makes it one of the most used cryptocurrency wallets on the market. It is owned by ConsenSys AG, which is valued at $3.2 billion. Yesterday ConsenSys updated its privacy policy and there is one update, that is heavily discussed. In this article we want to cover the updated privacy policy of ConsenSys and why everyone is talking about it.

A Much Discussed Update

One of the biggest reasons why MetaMask is so popular among existing and new cryptocurrency users is because it is easy to integrate with almost all platforms that are Ethereum based. Furthermore it is free, and you can use it either through a web browser extension, or through your smartphone, on an app. In brief it is easy to install, use and obligatory for almost any dApp on Ethereum.

Yesterday ConsenSys published its updated privacy policy and one paragraph has been heavily debated since then.

Source: https://consensys.net/privacy-policy/

“When you use Infura as your default RPC provider in MetaMask, Infura will collect your IP address and your Ethereum wallet address when you send a transaction”.

Before we discuss this change in ConsenSys privacy policy we should have a briefly look at RPC and what it is.

In order to complete user requests, such as sending transactions, retrieving block data, or evaluating the blockchain’s state, a decentralized application (dApp) consistently needs data from the blockchain. Through Remote Procedure Calls (RPC), nodes connect dApps to the blockchain. By utilizing RPC nodes, web3 applications can interact with the blockchain and access user data more easily.

Why Is This Update So Controversial?

One big problem is that Infura is always automatically used as the default RPC provider and you actively have to choose another provider.

https://twitter.com/Beastlyorion/status/1595625291438850049

Another problem and basically the whole point of web3 were the concerns about decentralization and that a true web3 application should not collect user data. Therefore the reaction from the Twitter community was vibrant and people are alreday looking for alternatives.

https://twitter.com/gooniebrad/status/1595617950761123845

Other Options You Have

There are several options how to avoid the collection of your private data, that we want to talk about now.

  • VPN; A simple and fast solution is using a VPN to conceal your location when using MetaMask but be aware that a VPN only disrupts the collection of location data and not the wallet address.
  • MetaMask; You can simply stay with MetaMask and change your RPC provider. A list of other providers can be found here. Almost every provider has a detailed tutorial how to install and use its service.
  • Other Wallets; You can also use other wallets like Trust Wallet or Rainbow wallet.

The most decentralized and best possibility is to run your own full node as a RPC, but this is something for another article.

Who We Are

Moonrock Capital is a Blockchain Advisory and Investment Firm, incubating and accelerating early stage startups since 2019.

Website: https://www.moonrockcapital.io

Twitter: https://twitter.com/MoonrockCapital

Telegram: https://t.me/moonrocktimes

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Moonrock Capital

Moonrock Capital is a Blockchain Advisory and Investment Firm, incubating and accelerating early stage startups since 2019. https://www.moonrockcapital.io