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All you've done is add an additional third party that can view and log what you're doing.

You forgot the part where it's protecting against trashy ISPs like the one in this article.

I did not forget that. The privacy lost is worse than the supposed "protection" gained by using DNSCrypt. "Trashy" ISPs can (and do) still intercept and modify the HTTP traffic even if they can't intercept and modify the DNS traffic.

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