The Dark side of Decentralized Apps: Is Your Data actually Yours, is it Secure?
Tags: blockchain, javascript, security, web3
Published: 2023-01-13 22:15:02

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**Is Your Data actually Yours, is it Secure?**

Decentralized applications (dApps) are making waves in the world of technology and finance. These applications are gaining in popularity due to their promise of decentralization, autonomy, and security. But are these applications actually decentralized? In this post, we’ll dive into the underlying technologies of dApps and why many of them are not actually decentralized.


## Decentralization
Let’s start by defining what **decentralization** means. Decentralization is a system where there is **no single entity** in **control** of the system. It is an architecture where there is no central authority. With decentralization, no one party has control over the system. The idea is that the system is run and maintained by a network of nodes, which are computers or nodes that are connected to the network. 

So, if a dApp is decentralized, it should be run and maintained by a network of nodes, right? Not necessarily. Many dApps are not actually decentralized. They are run by centralized services such as Alchemy, Pinata, Binance, and many others. These services act as gatekeepers to the dApp, and they control access to the dApp. This means that these services can control who can use the dApp and what they can do with it. They can also collect data from users and use it for their own purposes. 


The problem with this is that it defeats the purpose of decentralization. The whole point of decentralization is to provide autonomy to users, but with centralized services controlling access, users are not given the autonomy they should have. Furthermore, these services can collect data from users without their knowledge or consent, and they can use this data as they please. This goes against the privacy and security of users, as their data can be used for purposes that they may not have agreed to. 

In addition to this, decentralized applications are also vulnerable to security risks. Since the blockchain technology that powers decentralized applications is still relatively new, there are security risks that haven’t been fully examined. This means that the data stored on the blockchain could be vulnerable to attacks from malicious actors. Furthermore, the security of the blockchain itself is still open to debate. 

Finally, data has become one of the most valuable commodities in today’s world. Companies are willing to pay a lot of money for data, as it can be used to target users with specific ads and even influence their buying decisions. This means that companies like Alchemy, Pinata, and Binance can use the data they collect from users to make money. This is not the decentralized future that many envisioned for dApps. 


## Are dApps really **decentralized**?
So, are dApps really decentralized? The answer is no.
Many dApps are controlled by centralized services that are collecting user data and using it for their own purposes. Furthermore, the blockchain technology that powers dApps is still relatively new and vulnerable to security risks. Finally, data has become one of the biggest business commodities, and companies are willing to pay a lot of money for it. This means that these centralized services can use the data they collect from users to make money. 

It’s important to remember that decentralization is not the same as autonomy. Many dApps are not truly decentralized, as they are controlled by centralized services. This means that users are not given the autonomy they should have, and their data can be used for purposes that they may not have agreed to. Therefore, it’s important to understand the underlying technologies of dApps and why many of them are not actually decentralized.


## **Take - away**

> Cutting back on third-party applications when building dapps can give users the ultimate flexibility when interacting with them. So, let's reduce those third-party apps and give our users the best experience possible!


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