Decentralized vs Centralized API

Understanding the tradeoffs in Web3 data infrastructure

Key Differences

AspectCentralizedDecentralized
InfrastructureCompany serversP2P network
Uptime99.9% SLAVariable
LatencyLowHigher
Trust ModelTrusted third partyCryptographic
CensorshipCan be censoredResistant
CostSubscriptionToken economics

✓ Decentralized APIs

  • No single point of failure
  • Censorship resistant
  • Transparent pricing
  • Examples: Pocket Network, Graph Protocol

✓ Centralized APIs

  • Higher reliability
  • Better performance
  • More features
  • Examples: Alchemy, Infura, QuickNode

When to Use Each

💡 Best Practice: Many apps use both. Centralized for main infrastructure, decentralized as backup.
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