P2P

File sharing is the process of users distributing and sharing digitally stored files such as software, documents, music, movies, and other media through uploads from or downloads to one’s computer. These files can be shared with a select group of individuals such as one’s friends and family, or with the general public online. They can be hosted from a torrent website or simply given out through access to one’s cloud storage such as Dropbox or Google Drive.

P2P (Peer-to-peer) file sharing is the process of using software that allows users on the same network to gain access to digitally stored files without having to access a centralized server. Some examples of P2P file sharing are sites such as BitTorrent, RapidShare, Dropbox, MediaFire, and Mega. These sites facilitate this ease of data sharing even if it promotes piracy and illegal files being downloaded by many individuals. As discussed in the article “The BitTorrent Effect” by Wired, the creator of BitTorrent, Bram Cohen, discusses how the company has grown through the years and amassed approximately 40 million users in 2006 to become a thriving and popular P2P program today. BitTorrent has also found monetary success in the form of PayPal collections that keep the site running and also provides Cohen with a steady income to support his family. BitTorrent allows its users to easily upload and download large files from the site, and gives users faster download speeds in exchange for the user uploading more files to be shared with others to prevent the prevalence of leeching, or not uploading anything but downloading many files from the site. Popular illegally downloaded or ripped files such as television shows, movies, and music have called into question the legality of the site, but it has been revealed that BitTorrent gets around this problem because the site can be used for legal means as well. This is because Linux groups and video game companies use BitTorrent as their way to post and distribute their own software on the internet.

Another lesser known example of P2P sharing is through alternative methods of banking and obtaining loans. As explained in the article “Peers Find Less Pressure Borrowing From Each Other” by NPR, instead of going to standard financial institutions such as banks, companies such as Lending Club and Prosper utilize the process of P2P lending. Many investors put up the money to fund loans, they make a profit from borrowers paying back, and these borrowers receive lower interest rates than through a conventional bank because this new direct funding form of money lending is like a marketplace. Nonetheless, analysts predict that P2P lenders will not pose a threat to banks, but it can act as a supplement / alternative to the conventional process of loan approval and repayment.

References:

https://www.wired.com/2005/01/bittorrent-2/

https://www.npr.org/sections/alltechconsidered/2013/05/10/182651552/peers-find-less-pressure-borrowing-from-each-other