PEER TO PEER NETWORKS
The groundbreaking implications of decentralized applications are hard to fully grasp by simply discussing the technical jargon and underlying complexities. Looking at the broader picture is essential too. To understand the transformational aspect of DApps, it is also important to compare them to traditional web-based applications.
Basically, every app that we currently use, from Gmail to Wish, are all structured around a central administrator. This central authority is responsible for collecting necessary information from users and providing them with special access to the underlying services offered by the app. Furthermore, this central admin assumes the custodianship of all of this personal data collected by from its users. It is clear that with such authority comes a tremendous amount of power and control in this hierarchical structure.
On the other hand, in a decentralized structure, no node is granted higher access over another. Everyone can participate equally while keeping sensitive personal information to themselves. If it’s not yet apparent what makes this beneficial, then consider the case of Facebook.
The data farm their users and then turns this information over to advertisers and political interest groups for the sake of profit. Also considering the many hacking scandals that have put its sensitive user information in Jeopardy, Facebook becomes a great example of the pitfalls of a centralized network. The security and privacy offered by a decentralized network helps address such problems.