What are decentralized VPNs and how do they work?

2024, Mar 22

What is a VPN in the first place?

A virtual private network (VPN) is a service that sends all of your Internet traffic through an encrypted tunnel, protecting your information from outside intrusion. This encryption helps ensure that your data is transferred securely, preventing third parties from tracking and eavesdropping on your online activities. A VPN also changes your real IP address with a virtual one, enhancing your anonymity and allowing you to access the Internet but with the appearance of a user from another country of your choosing. All this can be done easily through an app or a click of a mouse.
How does decentralized VPN work?
Decentralized VPNs, or dVPNs, differ from conventional or centralized VPN services by using a distributed network of nodes, operated by individuals around the world, rather than through route traffic through servers operated by a single entity. This approach fundamentally changes the way data is processed and is designed to increase security and privacy. Here is an example of how it works:
Peer-to-peer, or P2P, networks are at the core of decentralized VPNs. Instead of connecting through dedicated servers in fixed locations, users connect through a network of nodes provided by volunteer users. Each node acts as a small temporary server, creating a highly resilient distributed network.
Regarding public IP addresses, due to the P2P nature of the network, a user's public IP address will be the last node they connected to, so they have no control over their location. However, this is also beneficial because they can use the residential IP addresses of volunteers, which helps overcome difficulties with known VPN IP addresses.
Regarding encryption and routing, when connecting to a decentralized VPN, your Internet traffic remains encrypted like a traditional VPN. However, instead of going through one server, your data is broken up and sent across multiple nodes in the network. This process, called multi-hop routing, makes it significantly harder to track or intercept your data.
There is no central authority controlling the network, which eliminates the risk of a single point of failure or attack. This structure makes it difficult for governments, Internet service providers, or hackers to monitor or censor user activity, thereby enhancing user privacy.
The token-based economy is used by many decentralized VPNs, which incorporate blockchain technology. Users can earn tokens by provisioning their devices as nodes or spending tokens to use the network. This encourages participation and network expansion while maintaining privacy and security.
Are Decentralized VPNs Like Tor?
Some other key differences include:
dVPN is generally faster than Tor. Tor's multichannel relay system can slow down Internet speeds significantly, making it less smooth for bandwidth-intensive activities. While dVPNs can also vary speeds due to their peer-to-peer nature, they can often provide faster connections because there are typically fewer hops.
dVPN is generally easier to use than Tor. dVPN's apps and interface often provide a more user-friendly experience, similar to a traditional VPN. Tor can be more complicated to install and often requires the use of additional security measures to ensure optimal privacy.
Although Tor provides greater anonymity than dVPN. Tor is highly appreciated for its anonymity, making it difficult to trace user activities. Meanwhile, dVPN focuses on protecting privacy, encrypting data, and hiding users' IP addresses. However, they may not anonymize traffic to the same extent as Tor, depending on the network structure and the level of transparency of the nodes within it.

Are decentralized VPNs more secure than centralized VPNs?
1.Open source platform:
Both dVPN and traditional VPN use open source protocols, like OpenVPN, for their core operations. This open source nature allows for community monitoring, which can help detect and remediate vulnerabilities. However, VPN providers' implementation of these protocols may vary. While dVPNs often promote transparency by using open source applications, traditional VPNs often take advantage of the security and trustworthiness of open source platforms.
Nearly all VPNs use open source protocols.
2.Decentralized and centralized servers:
dVPN distributes data across the network using user-operated nodes, which means increasing the number of entities that can access your data. In contrast, traditional VPNs route traffic through centrally controlled servers. While this central control mechanism may seem like a single point of failure, it also means that reputable VPN providers are able to enforce strict security protocols and undergo vetting. to verify their no-logs policy, centralizing trust in a single responsible entity.
With dVPN, your data will have to go through more parties to compromise it.
3.Risk of server intrusion:
dVPN's decentralized structure means that compromising a user's privacy only requires accessing one node, compared to needing to compromise multiple nodes in networks like Tor, which are designed to prevent any single point of contact. Which sees the whole picture of user activity. Centralized VPNs are also more difficult to breach because they use servers in data centers. This structure potentially makes dVPN more vulnerable to targeted attacks by well-funded adversaries.
Decentralized servers are more vulnerable than Tor or centralized servers.
4.Encouragement and security:
The cryptocurrency-based dVPN incentive model aims to reward node operators, theoretically incentivizing better service and maintenance. However, this model also opens up opportunities for malicious actors with strong resources to dominate the network by establishing high-bandwidth nodes, thereby concentrating data flow through points with high bandwidth. violated. This contrasts with the traditional trust-based VPN model, where user trust is built on transparency, auditing, and a history of trustworthy security practices.
Incentives make it easier for well-funded actors to compromise dVPN.

5.Anonymize payments:
While dVPN highlights cryptocurrency payments as an anonymity feature, many established VPN services also accept cryptocurrency payments, providing the same level of payment security that There is no need to tie service quality to the volatile cryptocurrency market.
You can already pay anonymously to centralized VPNs.
Is a decentralized VPN better than a no-logs policy?
Deciding whether a decentralized VPN is superior to a traditional VPN with a no-logs policy depends on understanding the unique privacy promises each type of VPN provides.
dVPN distributes traffic across multiple nodes, theoretically reducing the risk of any one entity collecting and logging your data. However, there's no real way to know if the node operator is somehow compromised or logging your data. Since nodes are anonymous and paid in cryptocurrency, it is difficult to track who they are. In contrast, a no-logs policy in a centralized VPN is a commitment not to store or track user activity. Confidence in this policy depends on the supplier's reputation, the regulatory environment and sometimes independent audits to verify claims. VPN Rice demonstrated the power of its no-logs policy when a server was confiscated by Canadian authorities but released no relevant data about the user in question. A no-logs policy is key to a VPN's success, meaning users and providers alike want to keep it in effect.

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