Surely you have heard when referring to the download of online movies, music, or the collective distribution of files. What is it based on? What is it used for and how is it used? We also include a section at the end dedicated to Bitcoin, the king of cryptocurrencies, whose protocol is based on this technology.
https://bitcoinscycle.com is a protocol that uses peer to peer technology to exchange files over the network. It can transfers are usually very fast since all the nodes in a group concentrate on transferring a single file or a collection of them
Definition
The Spanish meaning of peer to peer is ‘equal to equal’. Peer-to-peer (p2p), or ‘peer-to-peer’, refers to computer networks that use a distributed can think of a peer-to-peer network as a collaborative economy.
The nodes are equivalent, and have the same rights and obligations. They are clients and servers at the same time (they give and receive data in the same way). All the resources available in a peer-to-peer network are shared between the nodes, without any central server being involved. The shared resources in this type of network can be from processing power or disk storage, to bandwidth.
Point-to-point network (point-to-point) functions
The main purpose of peer-to-peer networks is to share resources and help different computers collaborate, provide specific services, or perform specific tasks. However, the main use case for P2P networks is file sharing on the Internet. Peer-to-peer networks are ideal for file sharing, because computers connected to the network can send and receive files at the same time.
Peer-to-peer distributed networks and servers
Consider the following situation. Open a browser and go to the web page to download the file
At the same time, the file will be sent from your computer to others on the same network. This situation is similar to a two-way highway. The files are like some small cars arrive at your computer, but they are also sent to others as needed.
Bitcoin protocol allows a user to establish a P2P connection to download files that other users (from the same file network) have and are willing to share.
Even if you manage to shut down one of the nodes, the others continue to work and communicate. You would have to shut down all nodes on the network (100%) to stop it working.
Peer-to-peer networks are extremely scalable. Adding new nodes is easy, and no configuration is needed on a central server.
There is no centralization. There is no administrator or central server on a peer-to-peer or peer-to-peer network. What makes the operation ‘democratized’? The power and responsibility belongs to ‘everyone’.
By having the same file stored on many nodes, when someone needs to download it, it is downloaded simultaneously from many locations.
Illegal uses of peer-to-peer networks
P2P is a controversial technology, because it is widely used for ‘ hacking ‘. There are many websites that offer access to copyrighted content such as movies, music, software or games, through peer-to-peer networks, due to its advantages. When using a peer-to-peer network, make sure you are not committing or contributing to piracy, or other cases punished by law.
Peer-to-peer business models (p2p)
Below we will see some examples of peer to peer networks. Applications, programs and platforms that use this technology as a peer as a business model.
Platforms allow people with specific ideas to raise funds to make their dreams come true. In 2015 alone, this model of raising money moved 34 million dollars worldwide.
P2P Finance. Platforms designed for users to lend or pay money. The platform keeps a small percentage of the value traded.
P2P purchases. E-commerce is the best example of P2P, the relationship that sellers establish with customers is direct, and at least, this happens on platforms such as: Mercado Libre, Amazon, eBay, Alibaba.
P2P services. It is paid for the realization of orders to users of the platform, it monetizes capturing a small percentage of the payment.
P2P file sharing. Some peer to peer platforms offer free versions to enjoy their basic services:
Bitcoin is connected to the computers of people around the world who are trading, so it’s okay unless servers around the world go down.
