How can they monitor the data? I mean how this works exactly?
If the data are confidential, which I think will be confidential, I will set up my personal server maybe.
You can't monitor this data on your side and if you are not using full Bitcoin node you will leak all your IP addresses and transactions for sure.
One thing we can do is using
Electrum with Tor and checking active
.onion servers but proper configuration is not that simple if you don't know exactly what you are doing.
I wrote about
costs of running full Bitcoin node in one topic and I would like to hear what is your experience and costs with using Raspberry Pi.
More people should run full node if they really want to have benefit of more privacy, and I don't think it's hard or expensive at all for average guy.