The State of web3 Privacy: Blockwallet x HOPR Discussion
RPCh is now live and providing truly private crypto transactions for the first time. You can try it for yourself here.
And the first wallet to integrate RPCh is BlockWallet. BlockWallet are an awesome team with privacy close to their hearts, and like HOPR they’re members of the Leading Privacy Alliance of web3 (LPA).
RPCh founder Sebastian Bürgel and BlockWallet founder Aleksandras Gaska recently sat down to chat all things privacy.
If you prefer your discussions in spoken form, we covered some similar topics in our Twitter Space, which also included a representative from Gnosis Chain.
SB: Why is privacy so important in web3?
AG: At its heart, Web3 is about restoring freedom and choice to the internet. People are understandably excited about building trustless, decentralized software, but we shouldn’t forget that privacy and liberty are intervened.
If you aren’t free to choose which data you do and don’t share, you will always rely on trust assumptions. Blockchain has been built to remove the need for these assumptions. At first, we built trust solely via transparency, but now we have the luxury of being much more granular with our data, largely thanks to technologies such as zero-knowledge proofs.
What do you think of the state of privacy in web3?
I think Web3 has a ton of potential, and it’s awesome to see a community that really cares about privacy. Of course, building truly private apps isn’t a walk in the park, but compared to Web2, where some companies didn’t really prioritize user privacy, it’s great to see the Web3 community stepping up.
The cool part is that people in Web3 are always learning and getting better. We’ve seen some solid progress in figuring out the privacy puzzle and coming up with solutions to make it work. It’s pretty exciting, and as long as everyone keeps working together, I’m sure we’ll see even more improvements down the line.
Why is it so difficult?
Well, it’s mainly because developing private software is such a unique approach, and there’s always something new to consider. It’s not just about deciding not to collect unnecessary user data. You have to dive into every aspect of your product, analyze how it uses data, and identify potential leaks.
On top of that, people often get excited about the flashy stuff, like zero-knowledge proofs, but things like transport-level privacy might not seem as sexy, so they can be overlooked.
We at RPCh think it’s kind of sexy, actually! But I get your point. You mean there’s a lot of focus on on-chain solutions?
Sure. It’s the fashion right now. And on-chain privacy is fascinating and crucial. But it’s seriously undermined if you don’t have off-chain privacy. There’s no point burning through compute to unlink transactions only to have them relinked again because you leaked your IP address.
Tools like RPCh are needed at the transport level just to make the cool stuff even possible.
How does BlockWallet help in the fight for privacy?
Our mantra is all about respecting our users, and that’s the driving force behind every choice we make. We know it’s essential to inspire trust in our software, and there’s no way we can do that if we’re like, “Hey, we’re gonna track everything you do in cryptoland!” So, we don’t gather any data at all, and we do our best to limit data leaks to third parties when we can.
But it’s not just about privacy. Security and user experience matter too. We give our users the whole package, making them feel safe and respected, so they can go out there and crush it in the crypto world.Our main focus at BlockWallet is individual user privacy and choice.
BlockWallet has a strict no data gathering policy. We don’t collect any user data, and we don’t pass anything on to RPC providers, beyond what’s needed to process your RPC call. We use a proxy setup to ensure that metadata is hidden.
Why did you decide to integrate RPCh into BlockWallet?
Even though BlockWallet’s got user metadata protection covered, we’re always on the hunt for ways to level up our privacy game, and RPCh is one slick solution. You know, it’s way easier to be amazing at something when you’re focused on one niche. As a wallet, we’ve got our hands in so many pots, so we’re more than happy to let the pros at HOPR take care of transport-level privacy for us instead of trying to nail it all on our own.
What about the costs? All this extra effort has knock on effects which make it more expensive to provide a service. Who should pay?
We’ve always been about shifting the responsibility from users to builders, especially when it comes to privacy. It’s on us to create tech that respects and protects our users. At the core, a user shouldn’t have to stress over toggles that could make or break their privacy or security. So, we’ve got their back. Sure, some things are manual or need a bit of know-how by design. Like with token allowances, we can’t force users to manage them responsibly. But we can provide tools and educate them as much as possible. Same deal with privacy. We aim to ensure base-level privacy and then offer tools for users to tweak it if they’re up for that.
So, what does base-level privacy involve? Transport-level privacy should be a given, but it’s not necessarily the wallet’s job. It should be baked into the foundational layers of blockchain. Until that happens, what wallets offer is more like an addon. This raises a philosophical question about the state of Web3: Are we genuinely building something better than Web2?
When it comes to costs, each company has to decide. Keep this in mind — quality commercial VPNs aren’t free. If a VPN is free, steer clear — you’ll probably end up being the product, just like on Facebook. Of course, if you’re savvy enough, you can set up your own VPN for free. The point is, if a product offers top-notch privacy right out of the box, it’s worth considering paying for it.
At BlockWallet, we care about our users, so we’re willing to shoulder the cost to patch up the quirks of Web3. But keep in mind, not all companies might be as committed to privacy as we are.
Has this focus on privacy caused you any problems?
Definitely, it’s always a bit of a struggle. Some things are trickier to implement when you’re all about privacy. For example, since we don’t track any user data in the wallet, we can’t easily gain insights into how people use our features or what we can do to improve them. We have to rely on less reliable methods, like user interviews, which can be a bit biased and subjective.
On top of that, refusing to gather user data can have knock-on effects for things like marketing and community growth. You can put yourself at a disadvantage compared to other projects that are more lenient about data collection.
But hey, we’re still able to achieve our goals, it’s just a bit more of a challenge.
Where do you think privacy will stand in the future of web3?
While there’s certainly a lot of buzz about regulators and such, it’s important to remember that Web3 is still in its early stages. There’s plenty of reasons to be optimistic about the future of privacy in this new era of the internet. Many people are invested in the idea of privacy, and countless companies are building technologies to support it.
As time goes on, I believe that people will become more and more invested in their privacy. Organizations like the Leading Privacy Alliance of web3 (LPA), which both HOPR and BlockWallet are members of, will undoubtedly play a role in educating people on privacy and serving as privacy advocates.
Overall, I’m optimistic about the future of privacy in web3 — the outlook is bright.
Sebastian Bürgel,
HOPR Founder
Website: https://rpch.net
Run RPCh Alpha for free: https://access.rpch.net/
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