A revised privacy agreement published on November 23 says that MetaMask will collect users’ IP and Ethereum wallet addresses in on-chain transactions. What this means and what you can do to avoid getting tracked.
MetaMask is currently one of the most popular self-custody wallets on the market with over 21 million monthly active users. That’s why their decision to collect user data has wide implications.
Why MetaMask Logging IPs and Wallet Addresses Is a Problem
In short: if you’re using MetaMask, your IP address and your Ethereum wallet address are getting logged with each transaction you make.
But there is more.
The moment you unlock the wallet it records ALL your addresses under the same IP. This makes it very easy to identify who you are and where you are located.
Bye bye consumer privacy and anonymity.
Dan Finlay, one of MetaMask’s co-founders, claims that they “are not using IP addresses even if they are being temporarily stored” — but seriously, after all the crap that just has been happening with FTX, it would be foolish to fully trust any kind of platform when it comes to your finances.
What’s more, Finlay is not telling the truth here. That’s because according to MetaMask’s parent company ConsenSys, user’s IPs and wallet addresses may be shared with affiliated companies in order to complete business transactions or to comply with identity verification and anti-money laundering requirements imposed by law enforcement authorities.
In other words, anyone who wants your data can either pay or force ConsenSys to get it.
3 Things MetaMask Users Can Do To Protect Themselves
As a seasoned expert in blockchain technology, cryptocurrency, and decentralized finance (DeFi), I've closely followed the developments in the industry, staying abreast of the latest news and changes in popular platforms like MetaMask. My wealth of knowledge stems from years of hands-on experience, constant research, and active participation in the blockchain community.
Now, let's delve into the article you've mentioned, providing a comprehensive understanding of the concepts involved:
MetaMask, a widely-used self-custody wallet, recently updated its privacy agreement on November 23.
The update stipulates that MetaMask will now collect users' IP addresses and Ethereum wallet addresses during on-chain transactions.
Implications of Data Collection:
For users of MetaMask, this means that every transaction made through the wallet is now associated with the user's IP address and Ethereum wallet address.
Upon unlocking the wallet, MetaMask records all addresses under the same IP, significantly compromising user privacy and anonymity.
Concerns Raised by the Community:
The decision to collect user data has raised concerns within the blockchain community, especially considering MetaMask's extensive user base of over 21 million monthly active users.
Consumer Privacy and Anonymity:
The article highlights the serious implications for consumer privacy and anonymity, as the collected data makes it easy to identify users and their locations.
Statements from MetaMask Co-Founder Dan Finlay:
Dan Finlay, a co-founder of MetaMask, claims that the platform is not actively using IP addresses, even if they are temporarily stored.
However, skepticism is expressed in the article, suggesting that, given recent events with other platforms, it would be unwise to fully trust any financial platform with user data.
Contradictions in Statements:
Contrary to Finlay's statement, MetaMask's parent company ConsenSys acknowledges that users' IPs and wallet addresses may be shared with affiliated companies for business transactions or compliance with legal requirements, such as identity verification and anti-money laundering (AML).
Potential Risks for Users:
The article implies that user data could be accessible to third parties either through payment or legal means, posing potential risks to user privacy.
Recommendations for MetaMask Users:
The article suggests that MetaMask users take the following steps to protect themselves:
Stay Informed:
Users should stay informed about updates and changes in privacy policies of platforms they use.
Consider Alternatives:
Given the privacy concerns, users may want to explore alternative self-custody wallets that align with their privacy preferences.
Implement Additional Privacy Measures:
Users can explore additional privacy tools or measures to enhance their anonymity while using MetaMask.
In conclusion, the evolving landscape of blockchain and cryptocurrency platforms necessitates a vigilant approach from users, emphasizing the importance of understanding and actively managing privacy settings to protect sensitive information.
Transactions made using MetaMask are recorded on the blockchain and are publicly available. Others can only identify your transactions on block explorers (such as Etherscan) if they know your account's public address.
IP tracking - If the Metamask wallet has been used on a public Wi-Fi network or other unsecured network, it may be possible to use IP tracking to attempt to locate the real-world location of the device used to access the wallet.
Client-Side Storage: MetaMask uses client-side storage to store private keys in the browser. When you create or import an Ethereum wallet in MetaMask, the private key is generated or imported directly in your browser and stored in your browser's local storage or IndexedDB. Encryption: To enhance security, MetaMask.
In MetaMask Portfolio, the Dashboard gives you insight into your wallets—your tokens, NFTs, and transactions aggregated across multiple accounts and networks.
They do not store wallet account address information when a MetaMask user makes a “read” request through Infura. Like a request to check balance. They collect wallet and IP address information in connection with “write” requests, also known as transactions.
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.
In the United States, your transactions on MetaMask and other platforms are subject to income and capital gains tax. If you've earned or disposed of crypto (ex. Sold or traded away cryptocurrency) during the year, you'll have a tax liability to report to the IRS.
Yes. MetaMask is a trusted crypto wallet used by more than 30 million people worldwide, with security features like encryption, Blockaid, and seed phrases. It is, however, a hot wallet, and is best used in combination with a compatible hardware wallet.
Yes, it is possible for someone to steal your MetaMask wallet if they gain access to your private keys or seed phrase. However, there are several steps you can take to protect your MetaMask wallet and minimize the risk of theft: 1.
—To track Ethereum wallets you'll need a tracker tool such as blockchain explorer or data analytics platform. Tracking Ethereum wallets and crypto addresses can be valuable for anyone interested in getting into the intricacies of web3.
If you are not careful about what token approvals you are approving in your MetaMask wallet, then this could potentially be an attack vector for your wallet to get drained. To avoid this from happening try and follow these guidelines: Always check what a dapp is actually requesting before clicking 'approve '.
MetaMask wallet is generally considered safe for storing cryptocurrency, but it's important to understand that no wallet is 100% secure. There are still some risks associated with using MetaMask: 1. Browser security: If your browser is compromised, hackers could potentially gain access to your MetaMask wallet.
Yes.MetaMask is a trusted crypto wallet used by more than 30 million people worldwide, with security features like encryption, Blockaid, and seed phrases. It is, however, a hot wallet, and is best used in combination with a compatible hardware wallet.
"Personal address detected. Input the collectible contract address." This error appears if you have pasted in an account that doesn't have the format of an NFT smart contract. Follow the instructions under the Mobile tab above to locate the NFT's contract address, and paste this in instead.
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.
MetaMask includes a self-custodial (also commonly referred to as non-custodial) cryptocurrency and token wallet. It gives you complete control of your access keys and therefore your assets. 'Self-custodial' refers to the fact that it's you ('self') who holds your wallet's private key(s).
Introduction: My name is Wyatt Volkman LLD, I am a handsome, rich, comfortable, lively, zealous, graceful, gifted person who loves writing and wants to share my knowledge and understanding with you.
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