The recently revised privacy policy of Uniswap, a decentralized exchange (DEX), appears to have agitated some community members, who are concerned that gathering and storing user data violates crypto’s fundamental principles.
Some community members commented on Uniswap’s updated privacy policy and said it was unusual for a decentralized organization to gather and store user data.
Around the time of FTX’s collapse, on November 11, Uniswap made a post explaining how it gathered and stored user data.
“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”
“That’s why we’re releasing a new Privacy Policy today – we want to be crystal clear about what data we’re protecting and how we use any data we collect. Transparency is key. We never want our users to be surprised,”.
Uniswap claims it doesn’t gather data that includes information like first and last names, addresses, dates of birth, email addresses, or IP addresses.
Uniswap added saying:
“We are committed to making iterative improvements to our privacy and security practices. For example, we recently released a reverse proxy server that sits between user devices and any third-party tool. This prevents third-party tools from reading user data, adding an additional layer of protection.”
A tweet from the team behind privacy-preserving cryptocurrency Firo on November 21 stated that they strongly reject the incorporation of data collection to track user behaviour and on-chain activity.
While we have the utmost respect in what @Uniswap has built, we strongly reject the incorporation of data collection to track user behaviour and onchain activity. This sets a dangerous precedent for DEXes. https://t.co/h4kCiQKtl7
— Firo $FIRO (@firoorg) November 21, 2022
In the wake of the collapse of the FTX crypto empire earlier this month, transparency has become a hot topic in the industry. Most crypto firms recently made a commitment to transparency by implementing Proof-of-Reserves.
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