- An Ethereum Foundation researcher claims that IP addresses of Ether (ETH) stakers are being monitored.
- This monitoring is part of a broader metadata collection that includes deposit addresses, withdrawal addresses, and fee recipients.
Ethereum Foundation Researcher Claims IP Addresses of ETH Stakers are Monitored
A researcher at the Ethereum Foundation (EF) has revealed that the IP addresses of Ether (ETH) stakers are being monitored, which has raised new privacy concerns in the wake of the recent Ether price boom.
The EF is a non-profit organization dedicated to supporting Ethereum and related technologies. EF researcher Justin Drake disclosed this news during an interview on the crypto podcast called Bankless.
Drake claims he learned about the IP address monitoring “internally.” Moreover, the EF researchers allege that IP addresses are only the tip of the iceberg, and there is broader metadata collection that includes deposit addresses, withdrawal addresses, and fee recipients.
Ethereum = 1984 chain
Justin Drake, who works as the “Researcher” at the Ethereum Foundation, said today that when you stake your ETH, you can be tracked via IP address.
He says he knows information “internally” that such databases exist. pic.twitter.com/2V6DvTobL3
— Pledditor (@Pledditor) April 13, 2023
Drake’s disclosure led to a thought-provoking discussion when he suggested that solo stakers might be eligible for “special airdrops,” while major industry players like Kraken and Coinbase could be excluded.
He pointed out that the collection of IP addresses allows the identification of solo stakers and major players, which could be used for airdrops. However, this could also result in major industry players being excluded from certain rewards or benefits.
Crypto Enthusiasts Respond to News of Monitoring
Crypto enthusiasts on Twitter quickly responded to the news, with some users labeling Ether as the “real surveillance coin.” Another user pointed out the situation as illustrating “central governance to a T.”
The monitoring of IP addresses has raised serious concerns about privacy and transparency in the Ethereum network. In response to these concerns, a Twitter user recommended that Ethereum users implement on-chain privacy measures, such as using a Linux operating system, employing a Virtual Private Network (VPN), and storing crypto assets on hardware wallets like Ledger.
This is Not the First Time Privacy Concerns Have Stirred the Crypto Community
It is important to note that privacy concerns have stirred the crypto community before. In November, ConsenSys, the team behind the Ethereum wallet Metamask, began collecting IP addresses to comply with Know Your Customer (KYC) and Anti-Money Laundering. The recent monitoring of IP addresses and metadata collection comes in light of the recent Shanghai upgrade, which allows users to withdraw their staked ETH from the Beacon Chain.
In conclusion, the monitoring of IP addresses and metadata collection in the Ethereum network has raised serious concerns about privacy and transparency. As the network grows and evolves, it will be important to balance the need for transparency with the right to privacy. The crypto community must work together to ensure that privacy remains a top priority in the development and adoption of blockchain technology.