WHAT IS A PEER TO PEER NETWORK (in layman’s term)

Scenario 1:

Imagine that there are 5 person A, B, C, D and E. A has given a loan of Rs. 50000 to each of the remaining four persons which they are supposed to return in two months with an interest of 2%. A also have signed a contract of all four according to which they need to return the money.

But A is not honest. Somehow he manages to manipulate the contract and now instead of 2% interest they are supposed to pay 3% interest. But as A have all the contracts there is no way anyone can prove him wrong.

Scenario 2:

Imagine that this contract is not just with A. All sign person have the same contract. So now no one can manipulate the contract and cheat. Because if anyone tries to do that he/she will be easily busted.

Scenario 1 is an example of how the centralized system works. There is only one authority who is responsible for inspecting if everything is conducted ethically. But in this case, if the central authority is compromised then the authenticity of the data of all others is at risk.

Scenario 2 is an example of a decentralized system, a Peer to Peer network. There is no central authority. In a peer-to-peer system, there are various nodes(computers) that are connected with each other and files can be shared with everyone on that network. Suppose there is a data sheet uploaded on peer to peer network then it is accessible to everyone. If any changes are made to it then everyone can see those changes. This makes the system more reliable and authentic. This is also the cornerstone of blockchain technology.

That was all for this article.

Thank you so much for reading.

Until next time.




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Rahul Odedra

Rahul Odedra

Curious learner

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