Key Takeaways
Virtual Private Networks (VPNs) are among the most important privacy tools available today, helping web browsers circumvent surveillance and protect their anonymity online.
However, traditional VPNs have a fundamental weakness. They route all traffic through servers managed by a centralized entity, undermining their privacy and exposing them to censorship.
The problem with centralization has become especially visible recently after multiple VPNs were removed from the Brazilian App Store, prompting fears that the government is cracking down on the technology.
In recent days, numerous VPNs have reportedly vanished from Apple’s App Store in Brazil, including NordVPN, ExpressVPN, ProtonVPN, and Surfshark.
In a statement on the matter, ProtonVPN said, “We are aware of problems in Brazil,” adding that it “could be a bug, or Apple implementing a secret censorship order.”
The apparent App Store block comes as the Brazilian government is under mounting criticism for its internet censorship that has played out in escalating tensions with the social media platform X.
Following a feud between Elon Musk and the Brazilian Supreme Court Judge Alexandre de Moraes, X closed its office in the country last week after refusing to comply with government orders requesting it ban certain accounts.
Regardless of what’s behind the challenges facing popular VPNs, centralization is clearly a factor, with Apple’s status as a gatekeeper to the iOS ecosystem creating a central point of failure and potential censorship.
In contrast to traditional solutions, decentralized VPNs (DVPNs) route traffic through a network of distributed nodes operated by individuals. Blockchain-based DVPNs introduce a peer-to-peer model that removes any reliance on centralized providers.
Although VPN providers claim to guarantee users’ privacy, most providers still log user data and will comply with law enforcement information requests. For die-hard privacy advocates, this undermines the entire point of using a VPN to evade surveillance.
Because there is no centralized actor logging traffic, DVPNs are typically considered more private.
As with other decentralized networks, snooping on a DVPN is almost impossible unless a single actor controls a significant portion of server nodes. Accordingly, as networks grow, they become even harder to compromise.
Nevertheless, they do have some downsides.
Centralized VPN | Decentralized VPN | |
Control | Managed by a single organization, centralized control. | Distributed control, no single point of failure. |
Privacy | Potential privacy risks are due to provider data logging. | Enhanced privacy as no central logging entity. |
Performance | Generally, the provider optimizes consistent performance. | Performance can vary due to their decentralized nature. |
Ease of Use | User-friendly with straightforward setup and customer support. | It may require more technical knowledge to set up and maintain. |
Security | Potential vulnerabilities if the central server is compromised. | More resilient to attacks due to its distributed architecture. |
Scalability | It can scale easily but is limited by the provider’s resources. | Scales organically as users join the network. |
Cost | Subscription-based can be expensive. | Often lower cost, with potential rewards for contributing resources. |
To incentivize participation, many DVPNs incorporate tokenomic models that use blockchains and cryptocurrencies. Such tokens can be used to pay for VPN services, with payments distributed as rewards to server nodes.
In such networks, anyone can run a node and relay data packets. Some DVPNs also utilize a staking model that generates rewards based on the amount of tokens staked.
Additional measures including the use of encryption and zero-knowledge proofs provide further privacy guarantees, ensuring even direct connections between network participants remain secure and don’t reveal identifying information.