Blockchain VPN: Does Distributed Ledger Technology and a Virtual Private Network Mesh?


VPN encryption is a mode of security that works by generating a key to encrypt the digital data. This way, unauthorized parties will not be able to access the data.

There is no real special technology behind VPN encryption – anyone can encrypt data on their own computer or the data that they send to others.

Companies may also use a more advanced form of VPN encryption. With this type of encryption method, people and companies can protect sensitive information from third parties.

Now, there is a twist to VPN encryption – some are turning to blockchain VPN. This type of VPN system is a process by which decentralized service nodes share the band with users and this way, connecting clients have an exit point concerning their connection.

The blockchain is utilized in this approach by the issuance of tokens to service providers that maintain the nodes – the more bandwidth they share, the more tokens they may receive. The ultimate expectation is that the network will become more secure through this process.

This type of method may seem like a promising idea, but it should also be recognized that there are issues involved. For example, the amount of security can vary and moreover, the technology is untested in relation to the blockchain and is still in development. Therefore, it could be some time before users get a sense of how well this technology works on the blockchain.

At this point, the service providers that do offer VPN technology on the blockchain are doing at stage one. At this stage, decentralized traffic is provided to service provider nodes and the nodes are then issued current tokens for providing bandwidth to service users. Even though this should be sufficient motivation to create a very secure network, this stage still has its issues.

As mentioned, service providers do not have the same quality and service security. This may ultimately put those who use the blockchain VPN in a precarious position.

Once stage one is complete, stages two and three will be issued. This process features continued decentralization for individual provider nodes until the service network is significant enough and nodes do not need help from centralized nodes. Given that this has never been done in practice, this stage is theoretical. Thus, it is ultimately very challenging to determine the effectiveness of this stage.

The focus of this technology should be security and although it is possible to infer that the entire network will be secure, there is still a question of the individual nodes. There is no indication as to how to secure each node on the network will be. There are various logging policies and procedures that can impact security, which makes it important for the nodes to be a focus as well.

Finally, there is another significant limiter on the potential of this technology and its adoption by service providers. At the end of the day, a service provider cannot adopt this technology without becoming a part of the network. If providers do not adopt the technology and become a part of the overall ethereum network, blockchain VPNS are no more than traditional VPNS.

Overall, when it comes to blockchain VPNs, there are more questions than answers.

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