What is Peer to Peer Network, and How does it work? - Blockchain Council (2023)

Have you ever wondered while playing online games, how do you connect with players around the globe so easily? The answer is: peer-to-peer networks. P2P networks have revolutionized the way we share and consume content online. From music to movies and even software, P2P networks have made it easier than ever to access and share large files over the internet.

But what exactly are P2P networks and how do they work? Despite their widespread use, the technicalities of P2P networks are often a mystery to many people. In this article, we will explore the basics of P2P networks and how they operate, giving you a clear understanding of this powerful technology. Let’s dive in!

What is a Peer-to-Peer Network?

In the simplest terms, a peer-to-peer network is a network created whenever two or more devices (usually a computer) are connected and share resources. But what creates the main difference here is that a peer-to-peer network, unlike conventional network systems, forms an ecosystem where the computers are connected through a single server computer. It can also be seen as a network where multiple computer systems are connected through a single server that enables the transfer of files from one end to the other.

Moreover, a peer-to-peer network also serves the role of a permanent infrastructure that can connect more than a dozen computers in a small region amidst the conventional offline environment. In addition to this, if you want to learn more about peer-to-peer networks and how they can be beneficial in the field of Blockchain, you can go for a Blockchain certification course from any certified platform.

What is a P2P (Peer-to-peer) Network architecture?

Peer-to-peer network architecture is a kind of network where there is absolutely no division of activities among various other sections. Every node performs the same task and set of actions where each device serves the purpose of both the server and the client. Response of network architecture established over the computer networking ecosystem under this model is such that each and every workstation is responsible for equal tasks but fewer devices are connected to the main server. The peer-to-peer network architecture is most suitable for residential areas and small-scale businesses in smaller regions. This is because in such networks every device plays an independent role as a workstation as it has access to save the entire set of data in its own database.

To state in layman’s language, the general peer-to-peer architecture is designed keeping in mind the functionalities of a single software program. In this way, every program is responsible to perform its task while fulfilling the role of both client and server carrying similar responsibilities and abilities. Moreover, if you wonder how to learn Blockchain basics, you can also get multiple content pieces to help you throughout the process.

Further, peer-to-peer networks can be classified into two major categories based on how the sections in the network are linked to each other. Here are the two major types –

  • Unstructured networks: An unstructured peer-to-peer network is one where the links in the network are established randomly. Such networks are easy to construct as any new peer that would like to join and contribute to the network can do so by copying the existing links of another section and then forming and spreading its own links.

However, it is equally important to know that the queries may not always get a resolution in unstructured networks so there can be hassles. For instance, a popular piece of content may be available to certain peers but if any other is looking for content that is rarely available, then the user may not be able to search for it.

Examples – Napster, KaZaA, Gnutella, etc.

  • Structured networks: Unlike unstructured networks, structured ones allow each peer to look after a specific section of the content over the network. These networks assign a specific value to each content and peer in the network which is then followed by a common protocol that determines which section is responsible for which part of the content. In this way, whenever someone reaches out to a peer to search for content, the network uses the common protocol to determine the section responsible for data transfer and direct the search query towards the peer responsible for it.

Examples – Tixati, Kademlia, P-Grid, etc.

How does a P2P network work?

Coming to the technical aspects of our topic, it is also necessary to understand the mechanism behind the working of peer-to-peer networks. While things are quite different in the case of Blockchain, where any Blockchain developer can resolve your query, the basic mechanism of a peer-to-peer network follows a different process. Generally, these networks have no distinct server for authenticating their users. Each device across the network manages its own security which makes it necessary to create a separate user account for each device that the user would need.

  • Usually, a user stores their file on their own devices, which is a computer in an ideal situation. They are themselves responsible for ensuring that these files are properly backed up for data recovery. Furthermore, the devices usually run both server and client software in a peer-to-peer network and can also make the resources available to other users on the network.
  • From the perspective of simplicity in network architecture, a peer-to-peer network is relatively simple to set up and is often an ideal deal for networks that require less than 10 devices and prefer a server-based solution over any other option.

Let us take an example to understand how a peer-to-peer network actually works. Suppose you want to download any file from the internet. The website you visit is like a store that has the file you want to download. The website plays the role of a server, which means it sends the file to your computer or device, which is the client. Just like driving on a one-way road, the data you download only flows in one direction, from the website to your computer. This is because the website is the only one that has the file you want, and your computer is the one that wants to receive it.

Similarly, in the case of a peer-to-peer network, whenever you browse the internet to search for a particular piece of content, this task of downloading is controlled in a slightly different manner. It is essential for you to have any peer-to-peer program installed on your device that can enable you to generate a virtual peer-to-peer network. Once this is established successfully, the file you want to download from the internet is received in the units of bits that come from different devices in the network that already have the same file on them.

(Video) What Is Peer To Peer Network ? | Blockchain Council

At the same time, the file is also shifted from your device to other computer systems that call for it. This entire process works in two ways the files convert into small bits of data that come from your device. Once this process gets completed, the network releases your file after sending the request, which is then followed by the final transfer of the file to all connected peer devices.

Characteristics of P2P Network

Peer-to-peer (P2P) networks have become increasingly popular in recent years, especially for applications such as file sharing, instant messaging, and online gaming. P2P networking is a type of distributed networking architecture where computers communicate directly with each other, rather than through a centralized server or hub.


One of the defining characteristics of P2P networks is their decentralized nature. Unlike traditional client-server networks, where a central server manages all communication between clients, P2P networks distribute the processing load across all nodes in the network. This means that each node has the same capabilities and authority as any other node, and there is no central point of control. Decentralization makes P2P networks more resilient and less susceptible to system failures or attacks, as there is no single point of failure.

Resource Sharing

Resource sharing is another key characteristic of P2P networks. In a P2P network, nodes can share resources such as files, bandwidth, and processing power with other nodes in the network. This means that users can access a wider range of resources than they would have access to on their own. In file-sharing applications, for example, users can download files from multiple sources, which can result in faster download speeds and increased availability of files.


P2P networks are highly scalable, as they can grow or shrink dynamically as nodes join or leave the network. This means that P2P networks can accommodate a large number of nodes without affecting performance, and they can also continue to function even if some nodes go offline. P2P networks can also be easily extended to include new features or services without requiring a complete overhaul of the network architecture.


P2P networks can provide a high level of anonymity, as nodes do not need to identify themselves to other nodes in the network. This can be beneficial for users who wish to remain anonymous while accessing resources or communicating with other users. However, anonymity can also make it easier for malicious actors to engage in illegal activities such as copyright infringement, fraud, and cyber attacks.


P2P networks can be both more and less secure than centralized networks, depending on the specific implementation. Because there is no central point of control, P2P networks can be more resilient to attacks such as denial of service (DoS) attacks, as there is no single target. However, P2P networks can also be vulnerable to attacks that exploit weaknesses in the protocol or in individual nodes. For example, a malicious node could insert malware into a shared file, which could then infect other nodes in the network.

Network topology

P2P networks can be organized in different topologies, such as pure P2P networks, hybrid P2P networks, and super-peer networks. In pure P2P networks, all nodes have equal capabilities and there is no hierarchy. In hybrid P2P networks, some nodes have higher capabilities or authority than others. In super-peer networks, some nodes act as hubs or servers that facilitate communication between other nodes in the network. The choice of topology depends on the specific requirements of the application and the size and complexity of the network.


P2P networks allow for greater autonomy, as users have more control over their own resources and can choose which resources to share and which to keep private. This can be beneficial for users who value their privacy or who want to maintain control over their own data. However, autonomy can also lead to a lack of coordination and cooperation among nodes, which can affect the overall performance of the network.

Types of P2P Network

Centralized P2P Network

In a centralized P2P network, there is a central server or hub that manages all communication between nodes. Nodes in the network do not communicate directly with each other, but instead communicate through the central server. This type of P2P network is often used in applications such as online gaming and chat rooms, where a centralized server is needed to manage user authentication, content distribution, and other tasks.

Centralized P2P networks offer several advantages, including greater control and security, as the central server can monitor and regulate the network. However, they also have several drawbacks, including greater vulnerability to attacks and greater dependence on the central server.

Decentralized P2P Network

In a decentralized P2P network, there is no central point of control or authority. Nodes communicate directly with each other, and there is no hierarchy or structure to the network. This type of P2P network is often used in applications such as file sharing, where users share files directly with each other without the need for a central server.

Decentralized P2P networks offer several advantages, including greater resilience, as there is no single point of failure, and greater autonomy, as users have more control over their own resources. However, they also have several drawbacks, including greater susceptibility to attacks and greater difficulty in managing the network.

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Hybrid P2P Network

In a hybrid P2P network, there is a combination of centralized and decentralized elements. Some nodes in the network act as hubs or servers that facilitate communication between other nodes, while other nodes communicate directly with each other. This type of P2P network is often used in applications such as online marketplaces, where a central server is needed to manage transactions and user authentication, but direct communication between users is also desirable.

Hybrid P2P networks offer several advantages, including greater flexibility and scalability, as the network can grow or shrink dynamically as nodes join or leave the network. They also offer a balance between the advantages and drawbacks of centralized and decentralized networks. However, they also have several drawbacks, including greater complexity and the need for more sophisticated network management.

Advantages of P2P Network

Distributed Architecture

In a P2P network, all participating nodes have equal status and can communicate with each other directly without the need for a central server. This distributed architecture makes P2P networks highly scalable, allowing them to handle large amounts of data and traffic without becoming overloaded.

Furthermore, P2P networks are resistant to failures and attacks since there is no central point of failure. In a traditional client-server network, a single server going down can render the entire network inoperable. In contrast, P2P networks can operate even if some nodes fail or leave the network, since other nodes can take over their responsibilities. This resilience is especially useful in distributed systems where it is difficult or expensive to guarantee the availability of a central server.

No Centralized Authority

In a P2P network, no single node has control over the network, making it more resistant to censorship, tampering, or failure. This decentralized structure also enables users to collaborate and share resources freely without being subject to the rules and restrictions of a central authority. This autonomy can be especially useful in applications where users want to exchange data or collaborate in a decentralized and open manner, such as in the case of open-source software development or decentralized marketplaces.


P2P networks can be more cost-effective than client-server networks since they require less infrastructure and hardware. In a client-server network, the central server and associated hardware can be expensive to maintain, especially as the network grows. In contrast, P2P networks can rely on user-owned hardware to handle communication and storage, reducing the costs associated with maintaining a central server.

Furthermore, P2P networks can enable more efficient use of resources since nodes can share resources and collaborate more effectively without needing to access a central server. This can result in significant cost savings in applications that require large amounts of computing power or data storage, such as scientific computing or data processing.


P2P networks are highly scalable since they can grow in size and handle more data and traffic without becoming overwhelmed. This scalability is due to the distributed architecture of P2P networks, which allows them to handle an increasing number of nodes without needing to rely on a central server.

Further, P2P networks can be more resilient to traffic spikes since they can distribute the load among the participating nodes, whereas in a client-server network, the central server can become a bottleneck during peak periods.

Robustness and Resilience

P2P networks are more robust and resilient than client-server networks since they can continue to operate even if some nodes fail or leave the network. This resilience is due to the distributed architecture of P2P networks, which ensures that there is no central point of failure. P2P networks can also self-organize and recover from failures since the participating nodes can take over the responsibilities of failed or absent nodes.

This robustness and resilience can be particularly useful in applications that require high availability and reliability, such as online marketplaces, e-commerce sites, or online gaming platforms.

Privacy and Security

P2P networks offer greater privacy and security than traditional client-server networks since they enable direct communication between nodes, making it more difficult for third parties to intercept or monitor communication. Furthermore, P2P networks often employ encryption and other security measures to protect users from malicious actors.

Moreover, P2P networks can be more resistant to attacks since they do not rely on a central server, making it more difficult for attackers to target a single point of failure. This decentralization makes P2P networks attractive for applications that require a high level of privacy and security, such as online voting systems, secure messaging apps, or decentralized marketplaces.

Disadvantages of P2P Network

While P2P networks offer several advantages over traditional client-server networks, such as faster downloads and lower costs, there are also several disadvantages that should be taken into account.

Difficulty in Implementation

Setting up a P2P network can be more complex and require more technical expertise than setting up a traditional client-server network. This is because P2P networks rely on a distributed architecture, which means that there is no central server to manage the network. Instead, each peer in the network is responsible for managing its own connections and sharing files with other peers. This can make it more difficult to set up and manage a P2P network, especially for users who are not technically savvy.

Network Management

P2P networks can be challenging to manage since they rely on the cooperation and contribution of the participating nodes. In a traditional client-server network, the network administrator can monitor and manage the network from a central location. With a P2P network, however, each peer is responsible for managing its own connections and file sharing, which can make it more difficult to troubleshoot network issues.

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Managing the resources and data in a P2P network can also be challenging since nodes can join and leave the network at any time, making it difficult to ensure data availability and consistency. This lack of centralized control can also result in issues such as data duplication or inconsistency, which can affect the reliability and efficiency of the network.

Security Risks

P2P networks are known for their security risks, which can include the transmission of viruses and other malware. Since each peer can connect to any other peer on the network, there is a risk of malicious users infecting the network with viruses or other malware. Additionally, files shared on P2P networks may not be properly vetted for viruses or other security threats, which can put users at risk. Finally, since P2P networks are often used to share copyrighted content, users may also be at risk of legal action for copyright infringement.

Limited Control

In a P2P network, no single node has control over the network, making it challenging to enforce rules, policies, or standards. This lack of centralized control can result in issues such as data inconsistency, conflicting rules, or malicious behavior by some nodes.

Moreover, the distributed architecture of P2P networks can make it challenging to ensure compliance with regulations or legal requirements. For example, in applications such as online marketplaces or social networks, it can be difficult to enforce rules such as age restrictions, content moderation, or intellectual property rights.

Legal Issues

P2P networks are associated with a number of legal issues, particularly related to copyright infringement. Since they are often used to share copyrighted content, users may be at risk of legal action for copyright infringement. Additionally, many Internet Service Providers (ISPs) have policies in place that prohibit or restrict the use of P2P networks on their networks. This can make it more difficult for users to access P2P networks, or to use them without incurring additional costs or penalties.

Applications of P2P Network

Peer-to-peer technology has undeniably paved the way for several other technologies that integrate with its architecture to provide greater and better services to users. Apart from Blockchain, which you can learn in any top-rated Blockchain class, there are various other applications of peer-to-peer networks.

However, there are few areas where P2P networks find quite different applications. Let us take you through some of the most common applications where peer-to-peer networks are predominantly used.

  • Peer to peer and copyright infringement

The first and most obvious application of a P2P network is associated with copyright infringement. As these file-sharing networks use the devices from both the end of the client and the server, it becomes one of the most commonly used platforms for sharing electronic media, mostly for pirated content. In addition to this, these networks also find their application in distributing malicious software such as spyware and viruses.

It means that by installing any peer-to-peer file-sharing software on a device, anyone can access the files among millions of other users, irrespective of whether the person is doing it intentionally or not. However, with such networks, people who lawfully buy content online may also get in trouble. So, it is always advisable to take the necessary precautions.

Some prominent examples of such software include Frostwire, Kazaa lite, BitTorrent, Limewire, and Gnutella.

  • File Sharing

P2P networks are widely used for file sharing. P2P file sharing allows people to share files with each other without the need of a centralized server. This means that users can send even large files quickly without worrying about bandwidth and server capacity. For instance, BitTorrent is a popular P2P file sharing protocol. It breaks large files into small pieces and distributes them quickly to multiple computers. Each computer in this network can download and share the files quickly. Internet Archive uses BitTorrent as its P2P file sharing protocol. The platform uses P2P file sharing to distribute books, music, movies available on public domains, making it easier for internet users to easily access such files.

  • Blockchain

As a technology, a P2P network is based on the concept of decentralization. The foundational architecture of Blockchain technology similarly enables a user to transfer cryptocurrency across the globe without needing any middleman or intermediary. With such a decentralized distribution, it becomes easier for any individual to become a part of this process of verification.

When a peer-to-peer network is enabled on a Blockchain, the network helps in the maintenance of a complete replica of the records ensuring the accuracy of data. On the other hand, it also offers greater security as compared to conventional client-server systems. Therefore, a peer-to-peer network works phenomenally when used with Blockchain technology. If you wish to learn more about the foundational concepts of Blockchain, make sure to pick up the best Blockchain training platform for it.

  • Content Distribution

Peer-to-peer networks are also used for content distribution. CDNs or content distribution networks are designed to distribute content to users from multiple servers. P2P networks can be used as a version of CDN. It will allow users to access and download content from anywhere without the need of one centralized server.

The Live Networks project is a type of P2P CDN. It uses a P2P network to distribute live video feeds of several events like sports and concerts. By distributing videos across multiple computers or nodes, the network is able to handle large volumes of traffic without overloading a single server.

  • Gaming

P2P networks are also used in gaming. P2P gaming allows users to play games with one another without the need for a centralized server. In P2P gaming, each player’s computer acts as both a client and a server, allowing players to connect directly with one another and share game resources.

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One popular P2P gaming platform is Steam, which allows players to download and play games from other players’ computers. This can help reduce download times and server load, making it easier to scale games to a large number of players.

Another example is Minecraft, a popular sandbox game that allows players to build and explore virtual worlds. Minecraft can be played in single-player mode, but also supports multiplayer mode through P2P connections. This allows players to collaborate on building projects or compete in games with one another.

  • Messaging and Communication

P2P networks can also be used for messaging and communication. Messaging and communication applications that use P2P networks allow users to communicate directly with one another, without the need for a centralized server.

One example of a P2P messaging application is Tox, an open-source, encrypted messaging platform that allows users to send messages, make voice and video calls, and share files. Because the platform is decentralized, it is more secure and less vulnerable to censorship or surveillance.

Another example is Briar, a P2P messaging app that allows users to communicate without an internet connection. Briar uses Bluetooth or Wi-Fi to connect directly with other users in the same physical vicinity, making it ideal for situations where internet connectivity is limited or non-existent.

  • Distributed Computing

Finally, P2P networks are used for distributed computing. Distributed computing is a type of computing where tasks are distributed across multiple computers. P2P networks can be used to create a distributed computing network, allowing users to contribute their computer’s processing power to a larger computing task.

One example of P2P distributed computing is the [emailprotected] project, which uses P2P networks to simulate protein folding and other complex molecular dynamics. Users can download the [emailprotected] software and contribute their computer’s processing power to the project, helping scientists to better understand diseases such as Alzheimer’s, Parkinson’s and cancer. The project has been successful in discovering new drug candidates and therapeutic strategies to combat diseases.

Another example of P2P distributed computing is the BOINC (Berkeley Open Infrastructure for Network Computing) project, which allows users to contribute their computer’s processing power to various scientific projects. These projects include research into climate change, astrophysics, and molecular biology. By contributing their computer’s processing power to these projects, users can help advance scientific knowledge and make important discoveries.

Future of P2P Network

Advancements in Technology

Blockchain-based P2P networks are a prime example of how advancements in technology are enabling new use cases for P2P networks. For instance, Blockchain technology can provide a secure and transparent way to track and verify transactions without the need for a central authority. This is exemplified by cryptocurrency, which is enabled by Blockchain technology and allows for secure and decentralized transactions.

With the rise of cloud computing, P2P networks can be used to share resources in a decentralized and transparent manner, leading to more efficient use of resources and cost savings. A good example of this is Golem, which is a decentralized P2P network that allows users to rent out computing power for various purposes, such as rendering graphics or scientific computing.

Emerging Trends and Use Cases

One of the most exciting emerging trends in P2P networks is the use of decentralized social networks. These networks, which are built on P2P infrastructure, provide greater privacy and control for users, as well as the ability to own and control their data. An example of this is Mastodon, a decentralized social network that allows users to create their own instances and communicate with other users across the network.

For example, P2P networks can enable more efficient and secure cloud computing by allowing users to share resources and data in a decentralized and transparent manner. Similarly, P2P networks can offer more privacy and control in social networking, as well as new opportunities for online marketplaces and e-commerce.

Another emerging use case for P2P networks is in online marketplaces and e-commerce. P2P networks can enable direct transactions between buyers and sellers, without the need for intermediaries such as online marketplaces or payment processors. An example of this is OpenBazaar, which is a decentralized marketplace that allows users to buy and sell goods and services directly with each other.

Challenges and Opportunities

One of the key challenges facing P2P networks is scalability. P2P networks can be difficult to scale efficiently, particularly as the number of users and transactions increases. This challenge is being addressed through new protocols and frameworks, such as IPFS and DAT, which can enable more efficient and scalable P2P networks.

Another challenge facing P2P networks is security risks, particularly as the networks are often open and decentralized. However, new developments in encryption and security protocols are helping to mitigate these risks, and P2P networks can provide greater security and privacy than traditional centralized networks.


With reference to our above discussion, it is clear that peer-to-peer network is one of the most sophisticated technologies that we have today. What makes it even more prominent is its link with Blockchain and the potential it holds in terms of its usability. However, it is equally important to know and understand that it may not always come to use for the right reasons due to such open and easy access to all types of content. While it can be a possible argument that this technology should not be promoted, we as individuals must understand our responsibilities as users while accessing online content.

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How does peer-to-peer network work in Blockchain? ›

Blockchain is a P2P network that acts as a decentralized ledger for one or more digital assets, which refers to a decentralized peer-to-peer system where each computer keeps a complete copy of the ledger and verifies its authenticity with other nodes to guarantee the data is accurate.

What is peer-to-peer network and how does it work? ›

In a peer-to-peer network, computers on the network are equal, with each workstation providing access to resources and data. This is a simple type of network where computers are able to communicate with one another and share what is on or attached to their computer with other users.

What does peer-to-peer mean in Blockchain? ›

The term P2P refers to decentralized networks of interconnected computer systems containing peers, or nodes. All nodes are equal, and the exchange of data occurs without a central server — that is, each computer or node can act as both a file server and a client.

What is a peer-to-peer network quizlet? ›

What is peer to peer networks? A peer-to-peer (P2P) network is created when two or more PCs are connected and share resources without going through a separate server computer.

What is peer-to-peer network in simple words? ›

In peer-to-peer (P2P) networking, a group of computers are linked together with equal permissions and responsibilities for processing data. Unlike traditional client-server networking, no devices in a P2P network are designated solely to serve or to receive data.

What is a peer-to-peer system and give examples? ›

A peer-to-peer network is an information technology (IT) infrastructure allowing two or more computer systems to connect and share resources without requiring a separate server or server software Workplaces may set up a P2P network by physically connecting computers into a linked system or creating a virtual network.

What is peer-to-peer communication in simple words? ›

Peer-to-peer (P2P) is a decentralized communications model in which each party has the same capabilities and either party can initiate a communication session.

How does peer-to-peer Bitcoin exchange work? ›

'Decentralized' exchanges or P2P (Peer-to-Peer) is a software-based platform that enables crypto-market participants to directly trade with one another by removing any third-party appearance.

How do P2P nodes find each other? ›

In peer-to-peer systems like BitTorrent and Bitcoin, you start your local program on a networked computer, and you become connected to other instances of the same program running on lots of other computers. The local process starts listening on a local port, and finds IP:port pairs for those other processes.


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