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Centralized vs Decentralized Applications

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With the existence of the dApps, some confusion arises about the Apps and dApps. Apps are the short form of applications and dApps are the short form of decentralized applications. 


Centralized Applications

Like Facebook, and YouTube in these types of applications everything is on one server, and every time whenever there is a request from the nodes these servers give data to the nodes. These Centralized applications are made of two things- The back End and Front end. Any standard application runs on a computer system operated by an organization. There may be many users on the node side but the backend is controlled by a single organization. These apps are useful when the developer needs full control over the apps and how it is used. It is much easier to upgrade a centralized app than a dApps.   


Decentralized Applications

The application that runs on our P2P network is called a decentralized application. In this decentralized application, everything runs in all the nodes of the network. dApps are often built on the Ethereum platform and can be used for a variety of purposes These decentralized applications are made with two things smart contracts and the front end. They use a Smart contract to complete the transaction between two anonymous parties and the front end to interact with the system. People interested in free speech point out that apps can be developed as an alternative social media platform. Some concern is that these dApps are new technology and hence it is not so user-friendly as centralized apps.


Basis of Comparison

Centralized Applications

Decentralized Applications (dApps)

DefinitionA single firm manages and owns a centralized program cyber-attacks Raible, which runs on a single server or cluster of servers.On a blockchain network, a decentralized app, or “dApp,” runs.
User InteractionThe user interacts with a traditional program.The User interacts with a Smart contract-based blockchain.
WorkingThe user gets the app from the app store and utilizes it by sending requests/information to a centralized server or cluster of servers. The server processes the request and responds appropriately after receiving it.In the case of DApps, there is no such requirement of downloading the app instead the user must pay a set amount (in cryptocurrency) to the developer to use these apps. The user has the facility to download the application’s source code via a “smart contract,” which is a collection of code, logic, and data that can be used to execute the application.
Backend codeThe centralized application’s backend code operates on centralized servers.The decentralized application’s backend code operates on a peer-to-peer network.
ExamplesExamples include- Google, Apple, Facebook, Amazon, Microsoft, Twitter, Instagram, Netflix, WhatsApp Examples include- Some of the popular dApps in the market are Uniswap, CryptoKitties, Rarible, IDEX, MakerDAO, CryptoPunks, BitTorrent, Audius, and MetaMask
Computing powerCentralized Applications require lower computing power.Decentralized Applications (dApps) require high computing power.
SecurityCentralized Applications are less secure.Decentralized Applications (dApps) are highly secure.
TransparencyNot Trustworthy as lack of transparency is there.Trustworthy as these are highly transparent.
Cyber attackThese apps are more vulnerable to cyber attacks.These apps are less vulnerable to cyber attacks.
SystemIf any server goes down system collapse.If any node goes down system will run normally.
Transaction TimesThey have low transaction times.They have high transaction times.
End- userThese apps are easy to use for end-user.These apps are difficult to use for the end-user.
CensorshipThey provide censorship.They provide resistance to Censorship.
PayYou pay for the services of centralized apps.They pay to become part of dApps.
Usability and ScalabilityIn terms of usability and scalability, they are better.In terms of usability and scalability, they are limited.
  • You retain complete control over the application and how it is utilized as the developer. 
  • These apps can handle higher traffic levels.
  • Easy to update as it is sent automatically on user’s device.
  • If the server goes down even then the user will be able to access an app.
  • Because of decentralization user data is not at risk in the event of a data breach or hacking attempt.
  • If a system error occurs, an app may shut down and no one may use the app until the issue is repaired, which may cause your customers to be inconvenienced. 
  • You must safeguard the main server, for that you may pay additional cybersecurity expenditures.
  • Difficult to fix the bugs and update the software due to decentralization.
  • Because cryptocurrencies and blockchain aren’t currently “popular” technology, your target audience is limited. 
  • These apps are not suitable for short term as dApp transactions are typically slower and more expensive than centralized transactions, you may find it difficult to attract users to your App in the short term.
Which one is for you? A centralized app works for you if you want a system that is easier to manage. A decentralized app works for you if you want benefits like redundancy and security.

Last Updated : 16 Jun, 2022
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