Are dapps really decentralized? Does it matter?

In theory, decentralized applications (dApps), use blockchains to host and manage data without centralized servers and connect users and developers directly without middlemen.

In reality, the term “dapp” has become fuzzy over time.

There are five main criteria for an app to be considered decentralized:

• Protocol changes are determined by user network consensus
• Value is stored in generated digital assets
• No one entity owns a majority of coins/tokens
• Data is stored on the blockchain
• Rewards are distributed to network users

Data storage on the blockchain might be the most important aspect for users; after all, data security is one of the main driving forces for decentralization.

And each “dapp” stores some of its information on the blockchain.

The question is, how much?

You would be hard-pressed to find a dapp that stores all or most of its information on-chain.

Why?

Entirely decentralized apps would hardly be usable.

And the more complex an application is, the more difficult it becomes to make it completely decentralized.

Therefore, we find that many dapps choose to build on top of the blockchain base layer to store certain bits of information, serve a frontend, run business logic, or provide additional utilities to users.

Should users care?

While the term “dapp” can be misleading, any amount of decentralization is a step in the right direction. Users should be aware that decentralization comes with its downsides as well: load times, gas prices, user experience.

What should concern users primarily is that smart contracts dictate transactions and store them on-chain.

Each app has a different function, and in turn, different obstacles present for developers in regard to decentralization.

Users have to remember that the blockchain is not superman. It’s a technology to replace centralized servers with a decentralized system of nodes.

At the end of the day, users want to use apps that are secure, useful, and efficient. The degree to which an app is decentralized is definitely a factor in this equation but may not be as big a player as you might think.

Magic Square is making crypto more secure

Magic Square is creating the first real store for crypto apps to deliver the highest quality, most secure products to users.

Blockchain storage is not the only security-related issue when considering crypto-apps. User interface comes with its own security issues, login credentials for example.

In the current state of affairs, users are required to keep track of a multitude of login credentials for each app and service they want to use. These details are often lost or compromised.

Magic Square solves this issue by securing a one-click login across all apps, secured with Self-Sovereign Identity SSI. SSI allows users to easily track which apps have access to personal information and grant/revoke app permissions with the swipe of their finger.

Furthermore, Magic Store only features community vetted apps, so if a specific app is too centralized or unsafe, the community will vote it down.

Summary

“Dapps” are not 100% decentralized for reasons of functionality and practicality. At this stage, it simply would not make sense for a developer to create an entirely decentralized application, but this should not discourage users from using dapps.

Magic Square is creating a reality that will allow the crypto app market to expand and improve towards a more decentralized vision. As with any new tech, blockchain implementation is a process. For now, users should rest assured that their transactions are secure. Who knows, maybe Magic Square will provide the infrastructure for the industry to make the final leap in the decentralized direction.