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 Alby might be worse since they have access to all your internet browsing if enabled as well as all your receives and spends.  I just wouldn't keep more funds on Alby than you're willing to lose and use it only with websites that you want to Alby to interact with 
 The Alby browser extension is a fully client side application. No data is shared with any party externally. Ally data is stored locally. You can have a look at the open-source code. But I agree it might be a bit surprising why all these permissions are needed. Here you can read more about it: https://guides.getalby.com/user-guide/alby-browser-extension/faqs/what-permission-does-the-extension-require 
 3.7.1 Data transfer to other controllers
Principally, your personal data is forwarded to other controllers only if required for the fulfillment of a contractual obligation, or if we ourselves, or a third party, have a legitimate interest in the data transfer, or if you have given your consent. Particulars on the legal basis and the recipients or categories of recipients can be found in the Section - Processing purposes and legal basis. Additionally, data may be transferred to other controllers when we are obliged to do so due to statutory regulations or enforceable administrative or judicial orders. 



Sounds like its up to Alby what they do with your personal data let alone be demanded by a government.  The fact they collect any data on their users is the problem.  I use Alby myself but in a very sandboxed way.  I wouldn't want my browsing history being tied to my lightning payment history.  However, I cannot read the code.  I'm just reading what they provide in their privacy policy.  Alby is very usuful, but people shouldn't assume they have any privacy using the extension 
 We don't do a good enough job in communicating the difference unfortunately. But it is an important one. 

Yes, the Alby account is a managed account by Alby which requires an email to sign up. We want to make the first lightning experience as easy as possible until we have a non-custodial alternative ready.

But you can use the Alby browser extension in a completely self-sovereign way with your very own lightning node. Doing so you have full privacy with the Alby extension. All data is stored locally on your device.  
 Right, people should have an easy way when first using lightning.  We can't expect people to deal with channel liquidity and what not.  I just don't think people fully understand the tradeoffs using a custodial wallet.  

Good to know that if using Alby with your own node that all data is stored locally!  However, aren't you tying your email to your node if you do this?    
 You only need an email address if you want to sign up for an Alby account. But that is not needed if you connect your own node or another wallet. Downloading the extension does not require an email address.