Blockchain software company ConsenSys clarified that it plans to only store and retain user IP addresses and wallet data for up to seven days. This is an attempt to reassure users that their personal information is being handled securely, after it saw a backlash when it first said it was collecting such data.
This immediately sparked privacy concerns. The main one being that a combination of on-chain data, like blockchain addresses and transactions, and off-chain data, like IP addresses, could be able to identify individuals and reduce the amount of privacy available on the network.
ConsenSys also said that it intends to limit data collection to on-chain transactions, not when users merely check their account balances. This would reduce the amount of times this data is collected.
ConsenSys added that it will make it easier for users to add a third-party RPC provider in a future update to give users more choices. This would make it easier for users to use alternative services to Infura and avoid ConsenSys's data collection.