Although peer-to-peer data transfer is a method used in different areas in the software world, it has found meaning in the cryptocurrency market with the title and scope of the Bitcoin white paper. Satoshi Nakamoto introduced the online payment method he called “Bitcoin: Peer-to-Peer Electronic Cash System” in an e-mail sent to a cryptography messaging group on October 31, 2008. Nakamoto, who included the technical details of the blockchain in the Bitcoin white paper, did not trust any central authority. suggested a reliable online payment method without the need for
In this article, you can find the answers to the question of what is peer to peer (P2P), which means peer to peer.
What is Peer to Peer (P2P)?
Peer-to-peer (P2P) refers to the sharing of data between users directly, without a third party such as a central server. While talking about the decentralization of the Bitcoin blockchain, it is stated that transactions take place in this way, from peer to peer. It is not directly connected to a central element such as a state, company, individual or organization in the middle or the center, but the transaction mechanism is distributed in a network. A distributed network structure is a system in which more than one device on a network communicates data between each other.
Is Peer to Peer (P2P) Safe?
The necessity of a central element has also emerged because it provides trust and controls at some point. With blockchain, no one needs to know and trust anyone else. Everyone involved in the blockchain will have a distributed ledger with the same transaction record. Even if only one person's ledger, i.e., the data in the blockchain software on his computer is tampered with or is cyber-attacked, this change can be rejected by the majority of the members of the network because everyone else has the same records. For this reason, it can be said that the blockchain, which allows peer-to-peer transfer, is safe.
How Peer to Peer Networks Work
Peer to peer is the transfer of data directly between two users. For this reason, users do not connect to a central server or to a system whose path necessarily crosses with a central authority. They communicate directly with each other through the protocols that run the related distributed system.
The Bitcoin blockchain is also a peer-to-peer (P2P) system that allows users to transfer cash between each other without the need for any central authority. Users make encrypted Bitcoin transfers, all transactions are recorded in distributed ledgers, and users connected to the Bitcoin blockchain network check the accuracy of the records in these ledgers.