Peer-To-Peer Network

Definition ∞ A peer-to-peer network is a distributed system where individual computers communicate directly with each other without a central server. In the context of cryptocurrencies like Bitcoin, this network architecture allows participants to send and receive digital assets directly, validate transactions, and maintain a shared ledger without relying on a central authority. Each node in the network acts as both a client and a server, contributing to the system’s resilience, censorship resistance, and decentralization. This distributed nature is a core tenet of many blockchain technologies.
Context ∞ The discussion around peer-to-peer networks is fundamental to understanding the operational mechanics and security properties of most cryptocurrencies. Key debates often revolve around network scalability, the concentration of mining or validation power, and the potential for Sybil attacks. A critical future development is the ongoing research into more efficient and secure peer-to-peer communication protocols, aiming to enhance the performance and decentralization of global blockchain networks.