The Reason Behind the Failure of Many Decentralized Projects

  1. No signs of legitimacy and trustworthiness
  • Centralized domain names such as .com, .net, and .org are indirectly controlled by the U.S Government. Verisign, a company responsible for managing the .com domain infrastructure, is under a contract with the U.S Government and has been reported shutting down sites frowned upon by the U.S feds.
  • Perhaps the largest security concern is when decentralized applications rely on third-party storage providers to handle their users’ data. If the storage provider gets hacked, shut down, or goes bankrupt, the entire application might shut down due to data loss. Badger, a renowned DeFi platform, was hacked for $120 million because of an exploit found in Cloudfare’s API mechanisms.
  • Relying on third-party wallets such as Metamask to store a project’s native tokens can also call for trouble as big tech companies can remove the Metamask extension at any given point.

Does a Fully Decentralized Application Really Exist?

Most decentralized applications use centralized infrastructure in one way or another, leading to various security problems in the long run and can be treated like a ticking time bomb.

What is Point Network and How Does it Work?

Point Network is a collection of software tools used to improve access to the decentralized internet (Web3.0).

  • Decentralized Storage: Perhaps the most severe vulnerability of Web2.0 is how big tech companies store and manage their users’ data. According to several reports, Google, Facebook, and other tech giants have been found guilty of selling their user’s private data. These malicious practices in addition to mass surveillance and censorship are no longer a thing thanks to Arweave’s decentralized peer-to-peer storage network, Point Network can store client data on the client-side itself instead of storing all of the data inside company-owned servers.
  • Decentralized browser: Point browser is a Web3.0-enabled browser that provides access to only decentralized websites and content and at the same time disallows users from visiting legacy internet websites such as google.com, microsoft.com, and others.
  • Point Wallet: Point Wallet will be used to send and receive cryptocurrency assets while also providing transaction history. Since Point Network’s backend (Point Node) can connect to multiple chains (Ethereum, Solana, Polygon, etc.) simultaneously, Point Wallet users would potentially be able to interact with any cryptocurrency blockchain without leaving Point Browser, provided that a Point Wallet plugin for that chain exists.

Conclusion

Although many decentralized projects have failed in the past, it is important to remember that the world of blockchain is still quite unfamiliar to most people.

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