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Crypto Dictionary

Peer-to-Peer

Definition

A decentralized network model where participants interact directly with each other without an intermediary.

Deep Dive

Peer-to-Peer (P2P) describes a decentralized network model where participants (peers) interact directly with each other without the need for a central intermediary, server, or authority. In a P2P network, each node or user can act as both a client and a server, contributing resources and processing power to the network. This architecture fosters direct communication and transaction capabilities, eliminating the single points of failure and control inherent in traditional client-server or centralized systems.

Examples & Use Cases

  • 1Bitcoin network
  • 2BitTorrent
  • 3IPFS (InterPlanetary File System)

Related Terms

DecentralizationDistributed LedgerBlockchain

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