What are peer-to-peer Networks (P2P)?

In general, a peer-to-peer network represents a multifaceted system in which people communicate directly with each other and work under a network. Each person in this network is called a node, and each node alone can perform a unique activity.

In decentralized networks, peer-to-peer refers set each person sends a cryptocurrency to another person in the form of a node. A Peer-to-peer system is Without the supervision of a central system. In this case, each transaction is on a case-by-case basis, so a specific company or program does not manage it.

You can also read: What is DigiByte? (All you need to know)

The foundation of peer-to-peer networks for file sharing launches in the late 1990s. Currently, the most prominent Blockchain algorithms worldwide use a peer-to-peer network to eliminate the degree of centralization in this type of network. However, peer-to-peer networks use in search engines and online stores.

How peer-to-peer networks work?

If you have ever worked with a torrent system, you will clearly understand peer-to-peer networks. In this network, each person in the form of a node can receive the information of the whole network and have a separate copy of it and then provide their information to other nodes. Therefore, it is no longer necessary for everyone to download the entire Blockchain file, as they have a complete copy of it. There is no central monitoring in this system, and each person is in direct contact with another person.

In a peer-to-peer system, the user can provide his system files to another node. This file enters the network and reaches the destination directly for download. On the other hand, the recipient can download and download this file without the intervention of any other application.

One of the advantages of peer-to-peer systems is that even with the increasing expansion of users,The security against malware and cyber-attacks is much lower than the state that a central network controls everything. With a monitoring server, there is a possibility that all data lose suddenly.

Unstructured P2P networks

Unstructured P2P networks create a kind of random structure between nodes so that the type of connection between nodes becomes unpredictable. In this way, a large number of nodes enter the network or leave it suddenly.

However, the speed of transaction and use of resources, in this case, is very problematic and causes the network to suffer from poor quality. In addition, some nodes have to wait randomly for hours for an answer from their opponent.

Structured P2P networks

Everyone can use this structure by using mathematical data and information mapping. In this case, the nodes are not connected randomly but search for their file hashes. Although the speed and quality increase, they also require more cost and maintenance time. In addition, in structured networks, the cost increases as the number of nodes and searches increases.

Hybrid P2P networks

This type of network is a combination of the client-server model and peer-to-peer networks. Suppose you have a primary server with multiple nodes, and each node on this server can work directly at the same time as a peer-to-peer and central network. Hybrid models perform better, and whenever an additional element is needed, they execute that protocol so that optimization increases.

Comparison of distributed and decentralized networks

Note that not all peer-to-peer models are decentralized, and each implements a certain degree of decentralization. Many networks require central commands to run and generally perform only one process in a decentralized manner. Also, small networks that operate on a common goal are somewhat semi-centralized, even without a centralized system.

The efficiency of peer-to-peer networks in Blockchain

Initially, the world of cryptocurrencies and bitcoin creates a decentralized network system that allows users to trade directly with other people and add transactions by adding each node to the network. Each node in the Blockchain can copy all the Blockchain information and verify and evaluate its data with the existing cryptographic system. But you may ask what the performance of the peer-to-peer system in the Blockchain is. Each Blockchain bases on a peer-to-peer network that nodes must operate on that.

In each Blockchain, nodes can also have different roles; for example, full nodes can take over the security of transactions, and each of them has a complete copy of the Blockchain.


One of the most significant advantages of peer-to-peer systems in the Blockchain is that they are much more secure than centralized systems. Suppose you have a compelling central server and millions of users use it daily. What happens if your server suddenly goes out of reach? Users can no longer take advantage of your processes, so your system is destroyed. But this is not the case in the Blockchain system. With the destruction of each node and the loss of information, the entire Blockchain is rarely attacked and damaged.

In this case, each node must validate its data and then add or remove that information. It ensures that the penetration into the Blockchain system through each node reduces and the risks minimize. If Blockchain gets more prominent and the number of nodes increases, the risk of attacking and seizing power decreases.

Other advantages of Blockchain networks and peer-to-peer systems include no central management and monitoring. In general, no government, organization, or bank can manage the Blockchain network, so the rules are present, and each node can operate in its place without an oversight unit. Many companies and programs use such systems to circumvent government laws to make it easier to buy and sell their services and products.


One of the main disadvantages of this method is the excessive complexity and weight of the transaction. Adding each transaction to a block in the Blockchain If the number of transactions and its nodes has increased, it requires an effective processing system. The far the security of the Blockchain increases, the more speed, efficiency, and cost of building the block also increases. Developers are currently looking for side-by-side methods that can solve such Blockchain problems. Ethereum and Lightning networks each have new architectures that have overcome such issues.

Another potential limitation relates to attacks that may arise during challenging fork events. Since most Blockchains are decentralized and open-source, groups of nodes are free to copy and modify the code and split away from the main chain to form a new, parallel network. Hard forks are entirely standard and not a threat on their own. But if specific security methods are not appropriately adopted, both chains may become vulnerable to replay attacks.


Peer-to-peer networks can be used when we do not need central monitoring. Blockchain is one of those networks where anyone can trade with other people as a node. Any peer-to-peer network eliminates centralism, insecurity, and censorship.

In addition to their usefulness in Blockchain technology, P2P systems can also serve other distributed computing applications, ranging from file-sharing networks to energy trading platforms.

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