# The Problem Kage Network Is Solving

The current generation of centralized, software-based VPNs offer a promising starting point for creating the infrastructure required to deliver a truly private and secure online economy. However, they currently suffer from 2 challenges that make them unsuitable as a long term, scalable solution:

1. **Limitations Of Software-based VPNs**

Software-based VPNs face 4 key limitations:

**a) Limited Device Coverage:** Software-based VPNs are typically installed on individual devices, requiring separate configurations for each. This approach leaves many devices unprotected, especially those that cannot run VPN software, such as smart TVs, gaming consoles, and various IoT gadgets.&#x20;

**b) Performance Bottlenecks:** Software-based VPNs can significantly drain system resources, causing slower performance and reduced speeds, particularly when running resource-intensive applications. This can be a major drawback for users who need efficient and high-speed internet connections.&#x20;

**c)  Complex Management:** Managing multiple software VPN installations can be complex and time-consuming, requiring individual configurations, updates, and monitoring for each device. This complexity can be a significant barrier for non-technical users.

**d) Security Vulnerabilities:** Software-based VPNs are more susceptible to malware and cyberattacks targeting the software applications themselves. \


**2. Limitations Of Centralized VPNs**

Centrally-owned VPN solutions face additional limitations including:

**a) Single Point of Failure:** Centralization means that any technical failure, misconfiguration, or malicious attack on the provider’s infrastructure could disrupt service for all users, rendering their privacy protections temporarily ineffective.

**b) Government Surveillance:** Centralized VPN providers may be compelled by government authorities to hand over user data, particularly in countries with strict data retention laws or where surveillance is widespread. This undermines the privacy VPNs are supposed to provide.

**c) Trust Issues:** In addition to third-parties like governments, users must trust that the VPN provider itself will not log, misuse, or sell their data. A single point of authority, beholden to a profit incentive means that there is a higher risk of this trust being abused.

**d) Data Breaches:** Centralized companies are prime targets for hackers. A successful breach can expose the personal data of all users relying on the service, leading to potential identity theft, financial loss, and other forms of cybercrime.
