P2P Network

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Pronunciation

[pee-too-pee net-wurk]

Analogy

A P2P network functions like neighbors trading directly with each other at a community swap meet, instead of everyone having to go through a central marketplace with a designated authority to approve exchanges.

Definition

Short for 'peer-to-peer network,' a distributed computer system where participants (peers) interact directly with each other without requiring central servers or intermediaries. In contexts, P2P networks enable direct exchange of transactions and data between nodes.

Key Points Intro

P2P networks distribute control and responsibility across all participants.

Key Points

Allows direct data exchange between network participants.

Eliminates the need for central authorities or servers.

Continues functioning even if many participants go offline.

Forms the communication layer underlying most blockchain systems.

Example

File-sharing systems like BitTorrent and networks like operate as P2P networks, allowing direct exchange of data between users rather than uploading to or downloading from central servers.

Technical Deep Dive

P2P networks typically employ a discovery mechanism for peers to find each other (such as DNS seeds or tracker servers), connection protocols for establishing links between peers, message propagation algorithms for efficiently distributing data through the network, and reputation or incentive systems to encourage cooperative behavior. In P2P networks, nodes maintain connections to multiple peers (typically 8-125) and relay valid transactions and blocks to ensure network-wide .

Caveat

While the term 'peer-to-peer' implies equality among participants, in practice, nodes often have different capabilities and roles within the network. Some may be full nodes with complete data, others light clients with limited functionality, and some may have specialized roles like or validation.

Related Terms

Blockchain & Cryptocurrency Glossary

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