The collection of data is required in order to provide superior service.

Uniswap, the largest decentralized Ethereum exchange, has just introduced a new privacy policy. The cryptocurrency exchange claims that the company is unwavering in its dedication to protecting the confidentiality of its customers' personal information.

"public on-chain data and limited off-chain data" are the two categories of information that will be collected from users of the exchange, according to a post on their website that was published on November 22, 2022.

The cryptocurrency exchange claims that it is still one of the leaders in protecting the privacy of its customers, but in order to maximize the efficiency of its service provision, it is necessary to retrieve both the public data that is stored on the blockchain and the limited data that is stored off the chain.

On-chain data that is readily available is rumored to be carefully evaluated in order to assist in the creation of the most beneficial and individualized service possible for users. When it comes to off-chain data, on the other hand, the specifics that they collect include things like browser versions and the type of device, among other things.

In the post that was made on its website, Uniswap emphasized the fact that these data are only collected in order to improve the overall experiences of its users.

The company claims that it does not share any information regarding its customers with any apps that are considered to be third parties. In point of fact, the cryptocurrency exchange announced that it had recently introduced a "reverse proxy server" that prevents information about users from being accessed by third-party applications.

Uniswap has stated that one of the primary distinguishing features of Web2 and Web3 continues to be privacy, and as a cryptocurrency firm that is of the opinion that privacy should remain sacred at all times, the exchange will always protect its users' privacy rights.

Users React, and Claims of Invasion Into Their Privacy Surface

Despite the reassurances provided by Uniswap, a number of users and observers have taken to social media to voice their concerns that the security of the cryptocurrency exchange may have been breached.

Users have begun to voice their dissatisfaction with the new development, particularly in light of a clause in the Uniswap report which admits that the exchange monitors for illegal activities by occasionally screening users' wallets utilizing blockchain analytics. Users are particularly upset about this clause.

They assert that Uniswap's claim that it protects users' privacy is nothing more than a sham designed to attract customers.