Peer-to-peer networks: advantages of P2P technology

In our day to day, we went back increasingly dependent on intermediaries. When having children, we must approach a registration office and declare the birth before the State. We also consult records when transferring a vehicle, selling a house or consulting a debt free.

For send money to a friend or family member, we must go to a bank, either to withdraw cash from an ATM or to transfer it electronically. Banks claim, make and validate transfers.

It is the same to send an email, where we depend on companies like Gmail, or at listen to a song on services like Spotify or YouTube Music.

The traditional approach to computer systems is the use of central servers. According to this model, a computer serves as a base to store information and share it with the rest of the devices on the network, called clients. But there is another way.

Peer-to-peer networks

In this model of computer systems, also known as P2P, «peer-to-peer» or «peer-to-peer», all devices are connected to each other via the internet, and files can be shared directly between terminalswithout the need for a central server.

In a P2P approach, each computer is both a server and a client on the network. In this way, devices work independently from each other, and with the same rights to initiate communication with each other, share resources, and validate users.

peer-to-peer networks they do not need intermediaries, as they work in a distributed way between all your access points.

Bitcoin: a peer-to-peer network

Surely, while reading this article you already associated some of these concepts with those of cryptocurrencies. Thanks to the P2P model, Bitcoin was created outside banks, states and central servers.

For the Bitcoin protocol, each participant functions as an equally important part of the network, within a system that is decentralized and distributed. And since most cryptocurrencies and crypto networks have imitated the Bitcoin model, they are also developed to work based on P2P protocols.

P2P networks and sale of cryptocurrencies

When buying and selling cryptocurrencies, one of the models is known as P2P. The concept is that of a negotiation between people, without a platform or an entity determining the price.

A crypto P2P operation is a transaction made directly between the wallets of two users, without going through any crypto platform or exchange. That, without intermediaries.

The purchase and sale of digital assets on a peer-to-peer basis requires a certain level of trust between the parties. As a protection measure, never send coins or make payments to people you do not know personally, or have no reference to.