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Home ยป Web3 Glossary ยป Peer-to-Peer (P2P)

Peer-to-Peer (P2P)

p2p definition peer-to-peer networks

P2P meaning and explanation ๐Ÿ“–

A network connection between two or more PCs to process data with

  • equal permissions
  • shared responsibilities
  • ability to share resources without going through a separate server

is known as a peer-to-peer network.

A P2P network is not designed to either receive or serve data only. This means the network works both as a client and server. Moreover, each network has the same rights as similar to its peer computer and it can be used for the same purposes.

One of the first uses of it was in the 1980s for the development and deployment of free-standing PCs. Later on P2P file sharing was introduced in 1999 when two American students named Sean Parker and Shawn Fanning created a music-sharing application called Napster. 

In the decentralized context, each computer is connected with other computers part of the network. Every computer has the copy of the ledger which helps to ensure the validity of the data.

These networks also allow transactions of cryptocurrencies and any other kind of funds without the need of third parties and central servers butting in.

There are two types of P2P networks in blockchain

Unstructured: where the nodes are randomly connected with other nodes.

Structured: where the nodes are connected with other nodes in an organized way.

If compared, a structured P2P network is more efficient than an unstructured one.

Advantages of Peer-to-Peer Networks

  • If one computer faces a glitch, the other computer remains running and acts like its backup and keeps the server up.   
  • There’s not much need for services like AWS to store data because the network stores data in a decentralized manner, thus, has no interference from central authorities.
  • Provides security to the blockchain network that makes it nearly unhackable.
  • Eliminate the chances of Denial Of Services (DOS).

All this is achieved because the P2P network serves as the core of a blockchain and provides robust advantages as its features.

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