- Ethereum Foundation researcher exposed the leakage of ETH stakers’ IP addresses.
- The incident has prompted investors to flag Ethereum over on-chain privacy concerns.
A recent report by Justin Drake, an Ethereum Foundation researcher, raised an alarming issue. He stated that Ethereum staking exposes users’ IP address information, potentially compromising privacy and security.
Drake explained that metadata is utilized to keep track of a wide range of information related to transactions. He emphasized that multiple types of metadata can be analyzed to gain insights into the flow of funds in a given transaction. For instance, it is possible to scrutinize deposit addresses, withdrawal addresses, fee recipients, and even IP addresses associated with a particular transaction.
Ethereum Users Concerned Over Privacy
Ethereum’s users have been buzzing with concern after Justin’s statement about private data on the Ethereum network. The incident has raised alarm bells among users, who are now worried about the security of their personal information on the network.
In response to these concerns, some Twitter users have suggested that Ethereum users take matters into their own hands by assuming responsibility for their on-chain privacy. They recommend installing a Linux operating system, using a Virtual Private Network (VPN), and storing crypto-assets on a hardware wallet. These measures will help protect user data from unauthorized access and ensure it remains safe and secure on the Ethereum network.
Two days ago, Ethereum launched its highly anticipated upgrade, the EIP-4895 or Ethereum Shanghai upgrade, which now permits users to withdraw their staked ETH tokens, providing them with even more advantages. The Capella upgrade, in particular, reduces the gas fees that Ethereum developers pay, offering them a significant benefit.
Despite Justin Drake’s statement, ETH, the second-largest cryptocurrency by market capitalization, has demonstrated its market strength by recording a price increase of over 6% in the last 24 hours. At the time of writing, Ether traded at $2,115.53, as per CoinMarketCap.
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