What are decentralized VPNs?

In today’s increasingly connected world, safeguarding our online security and privacy has become paramount. The ever-growing demand for digital protection has given rise to a new player in the VPN landscape: decentralized virtual private networks.

But what exactly are decentralized VPNs? How do dVPNs work? And are they a better solution than regular VPNs? Find answers to all your questions in our decentralized VPN vs. conventional VPN guide below:

What is a decentralized VPN?

Decentralized VPNs represent a paradigm shift from conventional VPNs by eliminating centralized control over server networks and relying on the contribution of countless users who offer their unused network traffic to others in a peer-to-peer manner.

Rather than connecting to servers owned by VPN providers, you become part of an independent network of nodes. Blockchain technology usually  underpins the design of decentralized VPNs as it provides a framework for transparent and secure governance.

Users can earn rewards by contributing to the network of decentralized VPNs, which does not require setting up any specialized hardware. They are often compensated through special tokens and cryptocurrency, incentivizing network growth and fostering participation.

How do decentralized VPNs work?

Decentralized VPNs offer a unique opportunity for individuals to not only be users but also service providers. Desktops and laptops or single-board computers like Raspberry Pi and Odroid can be used to set up nodes for dVPNs.

These services create VPN tunnels to reroute data and also employ open-source VPN protocols commonly found in regular VPNs. Clients are assigned IP addresses based on factors such as routing rules, nodes, and tunnels. Users can choose their preferred locations, similar to conventional VPNs.

When it comes to using dVPNs, the process is similar to traditional VPNs. Decentralized VPN providers often come with software that you need to install. Once set up, users can view all the available nodes and even take advantage of features like selecting DNS providers or activating a kill switch for added security.

The pricing structures for dVPNs vary from provider to provider. While some offer subscriptions with fixed fees for unlimited access, others adopt a different approach where users pay based on the bandwidth they consume. 

Decentralized VPN vs. conventional VPN – Comparison table

Dive into the differences and features of decentralized VPNs and conventional VPNs in the comparison table below:

	Decentralized VPN	Conventional VPN
Maintenance	Community-driven	Service provider
Server ownership	Distributed nodes	Centralized servers
Server selection	Yes	Yes
Number of servers used in a connection	1	1
Speed	Depends on factors like node proximity, network capacity, etc.	Depends on factors like server proximity, load, etc.
Encrypted connections	Yes	Yes
Payment method	Crypto micropayments	Subscription-based

Are decentralized VPNs safer than conventional VPNs?

Even though decentralized VPNs operate without a central authority controlling all their servers, they are still not inherently safer than regular VPNs. 

1. Trust in entities: With dVPNs, users need to trust multiple entities, including the volunteer node operators (that could snoop on your data). When it comes to conventional VPN, users only need to trust a single company, often with a proven track record and multiple audits to prove its reliability. 

2. Open-sourceness: Both regular VPNs and dVPNs can be based on open-source VPN protocols. However, that alone does not guarantee your safety or security as it depends on the specific security practices followed by the decentralized or regular VPN provider.

3. Threat points: Conventional VPNs use servers owned by the service provider, making it easier to implement security measures to cover potential loopholes. dVPNs distribute the network across multiple nodes operated by different individuals, which not only adds more complexity but also potential vulnerabilities.

4. Crypto incentivization: The integration of cryptocurrencies in dVPNs does nothing to improve your VPN connection and increases potential risks. For example, it can attract bad actors, including state agencies, who may set up nodes with ulterior motives. 

In short, you need to carry out thorough research when considering either type of VPN provider. In both scenarios, you can come across poor products that can potentially result in your privacy and security being compromised.

Does a decentralized VPN outperform a no-logs policy? 

While decentralized VPNs offer the benefit of no centralized logs, there are still certain concerns associated with the way they work. For instance, the potential exploitation of users’ bandwidth by suspicious dVPN providers and the need for certain logging to protect against IP blacklisting. 

In contrast, a no-logs policy can provide the same level of privacy and security as reliable decentralized VPNs, provided that it is backed by independent audits of course. Ultimately, it is important that you carefully review the terms of use before signing up for any type of VPN service.

Are decentralized VPNs and Tor the same?

The Tor browser shares similarities with dVPNs due to its decentralized structure. Tor is intentionally designed to operate in a decentralized manner, with a vast network of nodes spread across the world. Decentralized VPNs, in a sense, replicate the infrastructure and node functionality of Tor.

However, there is a huge difference between decentralized VPNs and Tor in terms of how traffic is routed. Decentralized VPNs reroute traffic through a single node, whereas Tor takes a different approach by routing data through a minimum of three nodes (also called relays) for extra anonymity and security.

Frequently asked questions

Is Tor a decentralized VPN?

No, Tor is not a decentralized VPN and works differently using a network of volunteer-operated nodes that anonymize your online traffic and enable you to access onion services.

What is the difference between a VPN and a dVPN?

The main difference between dVPNs and VPNs lies in the nature of their server networks. A regular VPN uses servers owned by the service provider, whereas a decentralized VPN relies on a network of volunteer-operated nodes.

Conventional VPNs or decentralized VPNs?

While decentralized VPNs offer unique features such as peer-to-peer networking and no centralized logs, their effectiveness relies heavily on proper execution and adherence to high standards. No matter what VPN type you choose, remember that the best ones prioritize ethical practices, robust security measures, and transparent operations as you can stumble across sub-par products in both decentralized VPNs and conventional VPNs.