4-Security
Privacy

Hardware Wallets and User Privacy

KeepKey @KeepKeyDevs - Sep 3

Native Applications: Why is everyone tracking you?

TL;DR

  • Ledger: Opt OUT (Segment)
  • Trezor: Opt OUT (Internal)
  • KeepKey: Privacy by default.

“At KeepKey, we ensure privacy by default. Our software is open-source, adhering to Copyleft principles, and includes no bundled analytics. You’re never required to use closed-source software with our product. We prioritize privacy-first software for any opt-in features.”


The Big Question: Why Do Major Companies Like Ledger and Trezor Use Evasive Analytics?

During my time at ShapeShift AG, through the ShapeShift DAO, and the final takeover of KeepKey, I’ve been involved in discussions about ethical crypto practices.

ShapeShift resisted Know Your Customer (KYC) requirements (though we lost that battle), and early on, anonymized tracking analytics weren’t seen as inappropriate for crypto software. We always aimed to deliver a high-quality application.

This article will explore why a hardware wallet’s native application is essential for privacy, what KeepKey has done to protect users, and why platforms like Ledger, Trezor, and even ShapeShift have adopted opt-out analytics policies. Spoiler: it's not as bad as you think.


The Shift at ShapeShift

I advocated for ShapeShift’s transformation into an open-source company. This vision from Erik was realized through the ShapeShift DAO. ShapeShift became open-source, abandoning segment analysis and app tracking practices.

"What does the Product Team even DO if they can't analyze app use?"

The transition wasn’t easy. Traditional development practices, like tracking user behavior, error occurrences, and A/B testing, were integral to our workflow. There was tension with the Security Workstream, led by MrNerdHair, who raised concerns about potential backdoors in the software.

"You are literally asking me to audit a backdoor being put into our software."


The Compromise and the Birth of Private.shapeshift.com

To address this, we launched an Alpha version with tools like Pendo, allowing user data analysis, onboarding journeys, A/B testing, and more.

Thus, private.shapeshift.com was born. KeepKey leveraged this to bundle our Native Desktop app with NO TRACKING and full features, like no-KYC swaps powered by Thorchain.


Understanding Ledger and Trezor’s Tracking Practices

Why do Ledger and Trezor track users? As traditional companies, their goal is to expand their user base and profits. The likelihood of them discontinuing these practices is low—it’s just corporate strategy.


Conclusion

At KeepKey, we draw from ShapeShift’s transformation into a privacy-conscious DAO and the dedication of engineers like MrNerdHair. Our collaboration aims to protect not just assets but also the privacy and trust that underpin the crypto world.