Here's What You Can Do After Metamask Updated Its Privacy Policy (2024)

  • Top Stories
  • Joel Zhao
  • November 25, 2022
  • 10 mins read

Here's What You Can Do After Metamask Updated Its Privacy Policy (1)

In this article:

Key Takeaways:

  • MetaMask, recently updated its privacy policy to state that Infura (owned by Consensys) can collect your IP address and ETH address whenever you make a transaction.
  • 3 things you can do, VPN, change your RPC or change your wallet.

___________________________________________

If you are on Metamask, undoubtedly, you should know that your IP address gets logged with every transaction you make, making it possible to identify who you are and your location.

Here's What You Can Do After Metamask Updated Its Privacy Policy (2)

Consensys, the company that owns MetaMask, recently updated its privacy policy to state that Infura (owned by Consensys) can collect your IP address and ETH address whenever you make a transaction.

Here's What You Can Do After Metamask Updated Its Privacy Policy (3)

Not only do they collect data whenever you send a transaction, but all your addresses under the same IP also be recorded the moment you unlock the wallet.

ConsenSys’s clarification

While crypto Twitter took a negative sentiment on the update, Consensys released a privacy policy update to clarify their reasons for doing so and added that they would continue to strive to deliver the best in class products and services.

“We believe in transparency and want to ensure all users know what we are collecting and how it is being used, including what is collected by the MetaMask wallet versus what is collected by a wallet service provider.“

The team also stated that the new policy change did not result in more intrusive data collection/processing and came out to remind all that their “policy has always said that certain information is automatically collected about how users use our Sites and that this information may include IP addresses.“

When users interact with Ethereum or other blockchains through an RPC provider such as Infura (the default RPC you use when you use Metamask), the provider will receive the user’s IP and wallet address to provide the service.

Especially when users are exploring non-custodial ways to hold their assets, the policy update also made an effort to educate users that they can use their Ethereum node as an alternative to Infura, the default RPC provider in Metamask.

But, of course, under you are subjected to the custody of any RPC provider you wish to employ.

What are your next steps?

1. VPN

The most obvious solution is to use a VPN. However, according to Romeo on Twitter, one major downside is that most VPNs log your activity and link your account to it.

So it offers worse privacy than if you weren’t using any. Even when going for a no-log policy, alternatives may not work. The largest VPN, NordVPN, openly states they will, at the expense of law enforcement data requests.

Using a decentralized VPN client like Sentinel dVPN not only claims they can’t log you in but for you to enjoy secure and free interest access.

Metamask is logging your IP; the largest VPN, NordVPN, openly states they log you, a contradiction to their "100% no log policy”.

Is this really the web we deserve?

Sentinel #dVPN doesn't have a logging policy because it’s impossible for Sentinel to log you. 1/ https://t.co/HzuNU9wGlT

— Sentinel dVPN ⚛️ (@Sentinel_co) November 24, 2022

Always be curious to ask questions which compromise your position.

2. Continue to stay with Metamask, but change your RPC instead

B. The second option is to change the Infura RPC endpoint on metamask.

Here is how to do that…

3/7

— Airdrop Official🍥 (@its_airdrop) November 24, 2022

RPC is a set of protocols that allow a client (such as Infura of Metamask) to interact with a blockchain.

If you didn’t know, you could use another RPC endpoint on Metamask.

Of course, you undertake the inherent risk of any RPC you employ, but here’s how you can do it in 10 simple steps with Alchemy.

  • Create an account with Alchemy here.
  • Click on “Create App.”
Here's What You Can Do After Metamask Updated Its Privacy Policy (4)
  • Enter any name or description, select the Chain as “Ethereum”, and choose the Network as “Mainnet”.
Here's What You Can Do After Metamask Updated Its Privacy Policy (5)
  • Click on “Create App.”
  • Next, click on the “View key.”
Here's What You Can Do After Metamask Updated Its Privacy Policy (6)
  • Copy the “HTTPS” link
Here's What You Can Do After Metamask Updated Its Privacy Policy (7)
  • In Metamask, click on “Add Network” and “Add a network manually.”
Here's What You Can Do After Metamask Updated Its Privacy Policy (8)
Here's What You Can Do After Metamask Updated Its Privacy Policy (9)
  • Enter the Network name as “Ethereum Mainnet Alchemy”, and paste the RPC Url we copied earlier.
Here's What You Can Do After Metamask Updated Its Privacy Policy (10)
  • Enter chain id as “1”.
  • Block URL as “https://etherscan.io“.
  • Click “Save”, and it’s done. You are using Alchemy instead of Infura.

3. Changing your wallet

While many started to shill their product in light of the new Metamask update, finding one might be difficult, especially when you’re spoiled for choice.

We decided to look into XDEFI wallet. The first reason is that it supports over 20+ chains, NFTs and over 10K swap options. XDEFI wallet is also a great alternative to Metamask, as it has compatibility with all of the same dapps Metamask has.

The migration from CeFi to DeFi requires simple instruments for users to earn a yield on their assets.

Saver Vaults from @THORChain about to be released in the WebApp.

Earn a yield on your $BTC in a few clicks 🤝 pic.twitter.com/ULMBsLlPpi

— XDEFI Wallet (@xdefi_wallet) November 14, 2022

Furthermore, their plans to support other blockchains may give them better accessibility for investors who invest across various ecosystems. They even hinted at wallet support for NEAR, Cosmos and Trezor in the near future.

NEAR and Aurora support coming very soon 🔥

We've also added Rainbow Bridge to the swap aggregator so you can easily move assets in/out the @NEARProtocol ecosystem from within the wallet directly.

Next Cosmos, Osmosis, Injective and Sei. Keep your eyes peeled.

— XDEFI Wallet (@xdefi_wallet) November 21, 2022

Closing thoughts

There are two sides to the coin. While Metamask clarified certain misunderstood data collection components, some may think it is better to be safe than sorry.

Changing wallets, RPC, or even having a VPN may be viable options for you to retain your privacy, and honestly, you have every right to take responsibility for doing so. Just be sure you’re getting yourself into something that doesn’t exploit your privacy in creative ways.

But there could be a chance that the coin lands on either. And that is where we find common ground.

Here's What You Can Do After Metamask Updated Its Privacy Policy (11)

Engaging in conversations, even with a sensitive topic like privacy being brought up, is a needed step to move forward.

Even with valid points for both parties, when the conversation steers towards being a competition on which is better, it will distract crypto from seeing greater adoption in the future.

Also Read: Marouen Zelleg Of ConsenSys On Metamask, Unlocking Web3.0, And Institutional Adoption

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

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As an enthusiast deeply immersed in the world of blockchain and cryptocurrency, I find myself compelled to shed light on the recent developments surrounding MetaMask's privacy policy update. My extensive knowledge in this domain allows me to dissect the intricacies involved and provide valuable insights for users navigating through these changes.

The crux of the matter lies in the revelation that MetaMask, owned by ConsenSys, now allows Infura to collect users' IP addresses and ETH addresses during transactions. This information, coupled with the fact that all addresses under the same IP are recorded upon wallet unlocking, raises concerns about user privacy.

In response to the backlash on crypto Twitter, ConsenSys issued a privacy policy update to clarify their stance. They emphasized their commitment to transparency, stating that the collection of certain information, including IP addresses, has always been part of their policy. The clarification insisted that the recent change did not lead to more intrusive data collection/processing.

Now, let's delve into the three suggested actions users can take in light of these revelations:

  1. VPN (Virtual Private Network): While using a VPN seems like an obvious solution, it's crucial to note that not all VPNs are created equal. The article highlights a potential downside, citing a tweet by Romeo that most VPNs log user activity, compromising privacy. The decentralized VPN client Sentinel dVPN is proposed as an alternative, claiming an inability to log user data.

  2. Change your RPC (Remote Procedure Call): The second option involves altering the Infura RPC endpoint on MetaMask. RPC, or Remote Procedure Call, is a set of protocols enabling a client to interact with a blockchain. The article suggests using Alchemy as an alternative RPC provider, outlining a step-by-step process for making the switch.

  3. Change your wallet: Exploring alternative wallets is the third option presented. XDEFI wallet is highlighted as a potential choice due to its support for over 20+ chains, NFTs, and a variety of swap options. The article touches on the importance of simple tools for users transitioning from CeFi to DeFi and mentions XDEFI's plans to support additional blockchains like NEAR and Cosmos.

In conclusion, the article urges users to weigh their options carefully, considering the potential impact on privacy. It emphasizes the need for informed decisions, encouraging users to engage in conversations rather than turning the issue into a competition. As someone deeply immersed in the blockchain space, I believe that such discussions are crucial for the continued evolution and adoption of cryptocurrency technologies.

Please note that the information provided here is a summary and analysis based on my existing knowledge as of January 2022, and I recommend checking for any updates or changes that may have occurred after this date.

Here's What You Can Do After Metamask Updated Its Privacy Policy (2024)

FAQs

Here's What You Can Do After Metamask Updated Its Privacy Policy? ›

Key Takeaways: MetaMask, recently updated its privacy policy to state that Infura (owned by Consensys) can collect your IP address and ETH address whenever you make a transaction. 3 things you can do, VPN, change your RPC or change your wallet.

What is the new privacy policy of MetaMask? ›

According to the new policy, Metamask may temporarily process a user's IP address only when required for certain services, depending on the user's Metamask settings. This is part of Metamask's commitment to offer a privacy-preserving web3 wallet experience.

How to clear privacy data on MetaMask? ›

Click the three dots in the upper right corner of your MetaMask interface, and click 'Settings'. Then, click 'Security & Privacy'. Scroll down until you see the 'Delete MetaMetrics data' button. Clicking this button will delete MetaMetrics data associated with your use on that specific device.

What are the risks of MetaMask? ›

Potential risks of using a MetaMask wallet include: Phishing attacks: These are some of the most common threats for MetaMask users. Phishing attacks involve scammers attempting to deceive users into sharing their private keys or other information.

Does MetaMask track data? ›

MetaMask keeps your wallet data private unless you authorize permission to share your account address. You will see a MetaMask confirmation when websites request access to view your account address. Transactions made using MetaMask are recorded on the blockchain and are publicly available.

Does MetaMask report to government? ›

No, as of 2024, MetaMask does not automatically deduct taxes from crypto trades. However, MetaMask might still report your crypto transactions to your country's tax authority, like the IRS or HMRC.

What is the security warning on MetaMask? ›

How does it work? ​ Together, Blockaid and MetaMask have developed a security alert system using a privacy-preserving system that simulates transactions locally, providing warnings in your MetaMask wallet if a transaction is suspected as fraudulent.

How do I turn off Privacy mode in MetaMask? ›

On MetaMask Mobile, you can adjust your privacy settings by clicking the cogwheel icon in the lower left corner of the app, then clicking 'Security & Privacy'.

Will I lose my money if I reset my MetaMask account? ›

'Reset account' will wipe your transaction history, leaving your wallet otherwise untouched. See our account reset article for additional detail. In summary: Reset account will wipe your transaction history, but keep your wallet in MetaMask.

Can I trust MetaMask? ›

Is MetaMask safe? Yes. MetaMask is one of the most trusted cryptocurrency wallets for the Ethereum blockchain. Currently, MetaMask serves more than 30 million users across the world!

How do I keep MetaMask safe? ›

Basic MetaMask Safety Tips
  1. 1) Never share your secret phrase. ...
  2. 2) Download MetaMask only from the official website. ...
  3. 3) Use a strong password for your wallet. ...
  4. 4) Connect to only websites you trust. ...
  5. 5) Turn on these recommended security settings. ...
  6. 6) Lock or log out from MetaMask when not in use. ...
  7. 7) Use multiple MetaMask wallets.

Is MetaMask safer than Coinbase? ›

For a broader, more versatile cryptocurrency management tool, Coinbase Wallet will serve better. Security and Privacy: Those prioritizing high security and privacy might lean towards Metamask because of its decentralized nature and local storage of private keys.

Can the IRS see my MetaMask wallet? ›

All your transactions on MetaMask will generally be public, all someone needs is your wallet address to view the transactions. Almost all blockchains - including Ethereum - are public ledgers. That means anyone - the IRS included - can view the transactions a given wallet has made.

Can someone access my MetaMask wallet? ›

Metamask is a secure wallet, but like any software, it's not immune to potential risks. However, if you follow best security practices such as using strong and unique passwords, enabling two-factor authentication, and keeping your device free from malware, the chances of being hacked are significantly reduced.

What is the new meta privacy policy? ›

Meta, the parent company of Instagram and Facebook, has recently updated its privacy policies to include provisions for using user data to develop its AI models. This change may have significant implications for users, particularly visual artists and creators who share their works on these platforms.

What is the new feature of MetaMask? ›

MetaMask has unveiled a new feature that lets users test airdrops and explore NFTs on different blockchains. Leading Web3 cryptocurrency wallet MetaMask has unveiled a new feature that lets users test airdrops and explore NFTs on different blockchains.

What is the security policy of MetaMask? ›

Don't share your Secret Recovery Phrase and private keys

Never share them with anyone, including the MetaMask team or anyone claiming to represent us. We will never ask you to provide your Secret Recovery Phrase. If someone claims that we do, insist on not sharing.

What is MetaMask secret? ›

MetaMask has three different types of secret that are used in different ways to keep your wallet, and your accounts, private and safe: The Secret Recovery Phrase, the password, and private keys. We'll walk you through these secrets one at a time.

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