How does a P2P network work?

E-commerce is one of the most important trends in the digital world in recent years. It has made it possible to position any product or service through digital platforms. And one of the alternatives to position itself in this sector are P2P networks . These networks allow users to connect without any intermediary or server imposing a barrier. These ecosystems provide a better interaction between the parties. For this reason, they are used for the purchase and sale of all kinds of products and services.

They are called P2P for being direct between person to person , that is, it eliminates the existence of clients and servers. It has a large number of nodes that connect all users of the network. This format is also widely used by social networks, since they serve as platforms to exchange all kinds of information without the direct participation of companies or other types of organizations. Its growth in recent times has also been linked to the use of cryptocurrencies , since they allow you to buy these crypto assets easily and safely.

What is a P2P network?

P2P network is characterized by being decentralized and with millions of users spread over different places who seek to share all kinds of information from their computers. The basic operating protocol is TCP / IP , the same one used to surf the Internet. However, it should be noted that it allows free use by users for both legal and illegal activities. It is characterized by being very difficult to censor, so people use these networks to communicate freely.

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Most cryptocurrencies and other projects related to crypto assets are based on P2P networks . These networks allow users to buy any type of currencies according to the offer of the platform. P2P networks have grown exponentially  to reach instant messaging platforms, where millions of people can communicate with others with the press of a click . This is one of the most important examples of the potential of this system.

How does a P2P network work?

It is very easy to understand how a P2P network works. The first thing is to develop a protocol that allows users of this program to communicate with others  without any external element. The software that is implemented must have the ability to have a database of the other computers that are connected so that the user can communicate with whoever he wishes. In this way, it facilitates interaction between all members of the network. This platform grows as more people connect , creating independent nodes that increase the reach of the network.

This means that a P2P network increases its strength as the number of users in its ecosystem increases. This makes them invulnerable to central entities. A perfect example is the network developed by Satoshi Nakamoto. With the creation of Bitcoin that today has more than 10,000 active nodes, it demonstrated the potential that a Per to Per platform can have over time. P2P networks are one of the forms of communication and exchange preferred by a large number of people today.

P2P e-commerce: is it really safe?

One of the most important factors on the Internet is the security of its Internet users , something that P2P networks can provide . However, there are many discussions about it  and it is that some download pages have been massively monitored by various authorities around the world, which has caused panic among users. This occurs because when clients share files with others, the recipient’s IP address can be traced in order to know who is receiving that information.

This information tracking is widely enforced by copyright-related authorities. This is because thousands of audiovisual works are downloaded daily by this type of platform, which causes economic damage to intellectual property. However, due to its speed and simple way of communication, it is a great ally of electronic commerce . Some experts suggest the use of VPN as a way to protect the information that is shared and to make the transmission of data more secure.

Types of P2P networks

One of the types of P2P network is the centralized network . This network is designed on a large database within a main server. All computers that are connected to this server can make requests to decrypt the files they are looking for. But, they all depend on the central computer for their operation. It is used in public institutions and private companies that need to have constant communication with all their teams. And it is considered as a platform to manage each of the files that are necessary.

On the other hand, there are hybrid P2P , which are characterized by not having a central server . They have various equipment that facilitate interconnection with other users. Finally, there is the decentralized network  in which there are no central computers . All nodes function as receivers and servers of the information. Therefore, it is the most used by platforms for buying and selling products. This has made it the most replicated model on the internet due to the advantages it offers.

Advantages of the P2P network

The first advantage of the P2P network is that there are no intermediaries . A buyer can purchase your products and services much cheaper. These channels are widely used to create buying and selling platforms, which allows users to earn money even with second-hand products without having to make a large investment . Sellers can promote their articles without having to pay for advertising, since depending on the reputation they will appear on the platform’s pages.

If a marketplace is successful enough, there will be a large number of buyers who are interested in a specific item or various products. This gives sellers wide visibility . Another of its advantages is that in the P2P network,  since there are no intermediaries, the commissions are non-existent , which makes it a much more lucrative model than other internet models. P2P networks turn an e-commerce into an interesting site for those who want to buy, sell or advertise products.

Disadvantages of the P2P network

Being a decentralized platform, users can commit errors in the delivery or quality of the service or product. This causes annoyance to customers. Unfounded negative comments can ruin the reputation of any business, even defame potential buyers. Bad publicity often becomes irreversible damage for anyone. Despite the best efforts, it is impossible to offer a full guarantee on these networks. You have to trust the provider you have contacted and hope that they keep their word.

P2P network applications

The most exciting thing about P2P is that it has many practical examples. From social sharing or fundraising platforms to social media . PayPal is a site where hundreds of users exchange money in exchange for a commission that goes to the site. GoFundMe receives resources from people who want to support other users who are experiencing health complications. Finally, we cannot forget the sharing economy networks such as Uber and Airbnb , which connect individuals looking for a service with someone who provides it.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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