A Peer-to-Peer (P2P) network is a decentralized system where computers or nodes communicate directly without relying on a central server or authority. In such a network, each node functions as a client and a server, enabling users to share resources and information directly.
Advantages of P2P Networks:
- Enhanced Censorship Resistance:
Due to the absence of a central authority, P2P networks are less vulnerable to censorship, tampering, or failure. This makes them particularly valuable for applications that require open data exchange or collaboration, such as open-source software development and decentralized marketplaces.
- Increased Security:
Compared to traditional client-server models, P2P networks offer enhanced security. For instance, the decentralized nature of blockchains makes them highly resistant to Denial-of-Service (DoS) attacks.
- Greater Privacy:
P2P crypto exchanges provide more privacy than traditional online transactions.
Bitcoin, designed as a peer-to-peer monetary system, offers more privacy in transactions than conventional online exchanges.
