“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”
Uniswap also stated that none of this information includes personally identifiable information such as first name, last name, street address, date of birth, email address or IP address.
Despite this, some in the crypto community have shared concerns that the moves are in contrast to crypto’s core values, which are focused on user privacy and anonymity.
The team behind privacy-preserving cryptocurrency Firo argued in a Nov. 21 Twitter post to its 83,700 followers that Uniswap’s privacy update sets a “dangerous precedent” for DEXs:
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
OwenP, an affiliate for the DEX SpookySwap suggested that it was uncharacteristic for a decentralized exchange to collect and store user information on the backend.
“We were contacted […] by an infrastructure provider once who asked about our backend and what info we kept we were shocked by the question. ‘None of course’ [was] the answer.”
Meanwhile, Twitter user “CryptoDavid” also noted to his 12,000 Twitter followers on Nov. 21 that he wasn’t surprised by Uniswap’s decision, as other DEXs have also started doing the same thing.
Transparency has emerged as a buzzword in the industry following the collapse of crypto exchange FTX earlier this month.
Other crypto entities that have recently pledged towards “transparency,” including implementing “proof-of-reserves” in the case of centralized exchanges, include Kraken, Bitmex, Coinfloor, Gate.io and HBTC who’ve already completed audits.
Binance, OKX, KuCoin and a host of other exchanges also plan on doing the same.
Author: Brayden Lindrea