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Uniswap’s new privacy policy sees a backlash from decentralization enthusiasts

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Decentralized Exchange (DEX) Uniswap’s recently updated privacy policy appears to have drawn the ire of some community members, with concerns that the collection and storage of user data works against the core values ​​of cryptocurrencies.

In recent replies to the Nov blog Mail Regarding its updated privacy policy, some prominent members of the community have suggested that it is uncharacteristic for a decentralized entity to collect and store information about its users.

In a November 11 post by Uniswap Labs, which was released around the time of the FTX crash, the decentralized exchange released its privacy policy to explain how it collects and stores user data.

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“With innovations around blockchain, web3 aims to restore user privacy and choice after decades of online business eroding it.”

“That’s why today we’re releasing a new privacy policy – we want to be absolutely clear about what data we protect and how we use any data we collect. Transparency is key. We never want our users to be caught by surprise.”

This privacy policy, which was most recently updated on November 17, discloses that the exchange collects publicly available blockchain data, information about user devices such as browser information and operating systems, and information about users’ interactions with service providers, among other things.

Uniswap also stated that none of this information includes personally identifiable information such as first or 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 go against the core values ​​of cryptocurrencies, which focus on user privacy and anonymity.

The team behind the privacy-preserving cryptocurrency argued in a November 21 post on Twitter to its 83,700 followers that Uniswap’s privacy update sets a “dangerous precedent” for DEXs:

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OwenP, an affiliate of DEX SpookySwap I suggested It is not uncommon for a decentralized exchange to collect user information and store it on the backend.

We have been contacted […] By the infrastructure provider who once asked about our background and what information we kept, we were shocked by the question. “Of course nothing.” [was] the answer.”

Meanwhile, Twitter user “CryptoDavid” too pointed out He told his 12,000 Twitter followers on November 21 that he wasn’t surprised by Uniswap’s decision, as other DEXs have also begun to do the same.

Related: Digital Sovereignty: Taking Back Your Data in Web3

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Transparency has emerged as a buzzword in the industry After the collapse of the cryptocurrency exchange FTX earlier this month.

Other crypto entities that have recently pledged “transparency”, i.eIncluding the implementation of “Proof of Reserves” In the case of centralized exchanges, they include Kraken, Bitmex, Coinfloor, Gate.io, and HBTC who have already completed audits.

Binance, OKX, KuCoin and a host of other exchanges are also planning to do the same.