“By innovating around the blockchain, web3 seeks to reclaim the privacy and user choice that has been eroded for decades by the commerce of the internet.” We want to be clear about what data we protect and how we use the data we collect, which is why we’re announcing a new policy today. The key is transparency.
Furthermore, according to Uniswap, none of this data contains personally identifiable data like a user’s first or last name, street address, date of birth, email address, or IP address.
Despite this, some cryptocurrency community members have expressed concern that the changes run counter to the industry’s fundamental principles, which are centered on user privacy and anonymity.
In a tweet on November 21 to its 83,700 followers, the team behind the privacy-preserving cryptocurrency Firo argued that Uniswap’s privacy update creates a “dangerous precedent” for DEXs:
Owens, a partner of DEX SpookySwap, suggested that it is different for a decentralized exchange to collect and store user information in the backend. An infrastructure provider once contacted us and inquired about our backend and the data we store. We were surprised by the question. Meanwhile, Twitter user CryptoDavid also became aware of his 12,000 followers in November.
Twenty-one that he was not surprised by Uniswap’s decision as other DEXs also started to follow suit.
Transparency has become an industry buzzword following the collapse of the cryptocurrency exchange FTX earlier this month. Other cryptocurrency companies that have recently committed to “transparency,” including implementing proof of reserves in the case of centralized exchanges, include Kraken, Bitmex, Coinfloor, Gate.io, and HBTC, which have already completed audits. Binance, OKX, KuCoin, and many other exchanges are also planning to follow suit.