Consensys, the New York-based blockchain software company and developer of MetaMask, the most popular Ethereum wallet, has shocked the crypto community and especially decentralization supporters with new changes to its privacy policy.
Edward Snowden, one of the most influential voices in privacy, called the changes a crime if they occurred in a society where justice reigns.
MetaMask’s Privacy Concerns
Consensys revised its privacy statement on Nov. 23 to warn MetaMask’s more than 20 million users that when they transact using Infura as their default RPC (Remote Procedure Call) provider, their IP addresses and Ethereum wallet addresses will be collected and recorded.
In simpler terms, RPC is a software communication protocol that allows web3 applications to communicate with blockchains in a completely remote manner. Consensys bought Infura, a company that makes tools for blockchains and APIs, in October 2019.
Snowden’s disparaging remark
Edward Snowden took to Twitter to express his disappointment with the Metamask team, as he believes that the ploy to record personal data under the guise of the “decentralization” is close to the commission of a crime.
However, the tweet was removed by Snowden and followed by a new tweet stating that he had been contacted by MetaMask and that they were working to provide a clarification.
I’m told by Metamask that they’re working on a response to the question below. Wallet/IP records should never be retained (or shared.)
I’ve deleted my initial tweet, which contained an error (Infura was in fact acquired by Consensys, which also owns Metamask). Hope to hear more. https://t.co/Um0FAqOHh8
– Edward Snowden (@Snowden) November 25, 2022
Reactions from the Crypto community
From the reactions of the community, it is clear that most users are not happy with this news. The main criticism from the crypto community is that crypto-currency companies that are built on the ethos of privacy, anonymity and decentralization are gradually losing their way.
The fact that ConsenSys is an American company also adds to the distrust of some customers. Indeed, the collection of this data may make it easier for government authorities to impose fines and sanctions.
MetaMask’s response
Responding to the arguments of the experts and the crypto community as a whole, MetaMask tried to clarify things by stating that nothing had changed in their privacy policy and that it was a simple misunderstanding.
The language in our privacy policy was updated on November 23rd.
Nothing has changed in the way MetaMask and Infura operate.
Here’s a statement clarifying what we do with user data (spoiler: nothing).https://t.co/4dDKMvcMvv
– MetaMask 🦊💙 (@MetaMask) November 24, 2022
Joseph Lubin, CEO of Consensys and co-founder of Ethereum, has also stepped in to combat accusations that the MetaMask app is stealing users’ privacy.
He vehemently denied that MetaMask is operated by Consensys and added that it is the end users who operate the app. According to him, Consensys only played a role in the development of the software.
Speaking of RPC, he pointed out that,
“Although the end user may complain, all kinds of web3 dapps use RPC providers, which also need this data to serve users. The alternative is the scarcity or absence of usable products in web3. The direction to go is decentralization of RPC provision.”