Peer-to-peer (P2P) networking or computing is a distributed networking or computing architecture that distributes jobs or workloads across multiple computer systems, each acting as an independent peer. Any digital data, including crypto, can be shared through peer-to-peer networks.
Each peer in a P2P network is referred to as a node, and the nodes’ aggregate labor keeps the system up and running. Each node serves as both a client and a server to other nodes in this scenario. This means that all peers receive and transmit digital data the same way.
As a result, a P2P network’s structure is maintained by its users, who can both give and consume resources. P2P systems differ from standard client-server models. There is no such thing as a central server or host, which renders data distribution unidirectional (from a centralized server to its clients).
P2P systems are highly resistant to cyber-attacks and scalable due to their decentralized framework. It becomes more resilient and scalable as more people join. Because there is no single point of failure in more extensive P2P networks, they reach significant levels of security.
Bitcoin was created with the primary objective of providing a peer-to-peer monetary exchange. As a result, traditional online transactions are less private than peer-to-peer bitcoin exchanges.
