“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”
Uniswap further noted that no personally identifiable information such as first name, last name, street address, date of birth, email address, or IP address is included in this data.
Despite this, some members of the crypto community have expressed worry that the developments go against crypto’s primary ideals, which are centered on user privacy and anonymity.
In a Nov. 21 Twitter tweet to its 83,700 followers, the developers behind the privacy-preserving cryptocurrency Firo stated that Uniswap’s privacy upgrade sets a “hazardous 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, said that collecting and storing user information on the backend was unusual for a decentralized exchange.
“We were called […] by an infrastructure supplier who inquired about our backend and what information we maintained; we were taken aback by the query.” ‘Of course not,’ was the response.”
Meanwhile, Twitter user CryptoDavid told his 12,000 followers on Nov. 21 that Uniswap’s action didn’t surprise him because other DEXs have started doing the same thing.
Following the bankruptcy of crypto exchange FTX earlier this month, transparency has emerged as a term in the sector.
Kraken, Bitmex, Coinfloor, Gate.io, and HBTC are among the other crypto companies that have lately vowed to “transparency,” including adopting proof of reserves in the event of centralized exchanges.
Binance, OKX, KuCoin, and a slew of other exchanges want to follow suit.