Peer-to-peer, also called P2P for short, is a type of network architecture that enables various solutions in the field of data transfer. Examples of today’s uses would be the Tor Browser, BitTorrent or electronic payment systems such as Bitcoin.
P2P is a characteristic of a decentralized system that describes the notion that all participants within the system are equal and subject to equal privileges. The whole P2P architecture is a considerable contrast to the client-server model. This is based on a central unit (server), which distributes the data unidirectionally to the network participants (clients). The advantage of decentralization makes the entire system more secure, since the failure of one system participant does not cause any real disadvantage for the entire system.
In terms of the blockchain, P2P describes a network in which all participants are equal nodes. In the case of Bitcoin (BTC), the network represents a decentralized, secure and electronic payment system. This makes sending and receiving money around the world accessible to everyone without relying on a central authority.
