Ethereum (ETH) focused software company ConsenSys collects IP addresses and wallet address information of cryptocurrency users accessing Ethereum wallet MetaMask via its blockchain infrastructure service Infura.
The development came after the institution updated its privacy policy.
MetaMask Stores User Cryptocurrency Addresses and IP Addresses
ConsenSys owns both MetaMask and Infura. Infura runs blockchain nodes on behalf of wallets and individuals. When someone makes a blockchain transaction through the MetaMask wallet, it defaults to Infura, which publishes the transaction to the Ethereum blockchain.
MetaMask connects to Infura through a service called remote paging procedure service (RPC).
“When you use Infura as your default RPC provider in MetaMask, Infura will collect your IP address and Ethereum wallet address when you send a transaction,” ConsenSys said.
ConsenSys added that the firm will not collect such data if users access MetaMask with alternative RPC providers such as Ankr, Alchemy and others. Still, he pointed out that third-party RPC providers could collect such data if they wanted to.
The concern is that companies that collect both on-chain data such as blockchain addresses and transactions and off-chain data such as IP addresses can identify individuals and reduce the amount of privacy available on the network.
Still, MetaMask Founder Dan Finlay stated on Twitter that he thinks MetaMask does not use IP addresses, even if they are temporarily storing them. “I think we can fix this soon,” he said.
Earlier this year, ConsenSys raised $450 million in a Series D round that closed at a $7 billion valuation, making itself one of the largest companies in the cryptocurrency space. This Blockchain firm is led by Joseph Lubin, who played a role in the launch of Ethereum.
*Not investment advice.
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