Definition ∞ P2P networks are decentralized computer networks where each participating entity, known as a “peer,” possesses equivalent capabilities and can function as both a client and a server. These networks enable direct resource sharing and communication among participants without reliance on a centralized administrative server. They promote distributed control.
Context ∞ P2P networks form the foundational infrastructure for the vast majority of cryptocurrencies, facilitating direct value transfer and data sharing among users without intermediaries. Bitcoin, for example, operates on a P2P network, ensuring censorship resistance and distributed ledger maintenance. This architectural choice is a key aspect frequently highlighted in cryptocurrency news, underscoring decentralization benefits.