Blockchain and the role of P2P Network

Introduction to P2P Network and its Types

Peer to peer network, commonly known as P2P is a decentralized network communications model that consists of a group of devices (nodes) that collectively store and share files where each node acts as an individual peer. In this network, P2P communication is done without any central administration or server, which means all nodes have equal power and perform the same tasks.

Today, P2P networks are the foundation of most of the digital token revolution (STOs, asset-backed tokens, digital shares, tokenized securities), thus, making up a significant portion of the P2P “blockchain” industry.

Global Peer to Peer Finance Network – Blockchain

P2P is a technology that is based on a straightforward principle, and that is the concept of decentralization. The peer-to-peer architecture of blockchain allows all digital tokens to be transferred worldwide, without the need of any middle-man or intermediaries or central server. With the distributed peer-to-peer network, anyone who wishes to participate in the process of verifying and validating blocks can set up a node.

Blockchain

Blockchain is a decentralized ledger tracking of one or more “digital assets” on a peer-to-peer network. When we say a peer-to-peer network, it means a decentralized peer-to-peer network where all the computers are connected in some way, and where each maintains a complete copy of the ledger and compares it to other devices to ensure the data is accurate. This is unlike a bank, where transactions are stored privately and are managed only by the bank.

Popular P2P Blockchain platforms:

Ethereum

Its founder often describes Ethereum as a world computer. Ethereum is a P2P financial infrastructure able to support any digital token design if expressed as a collective Smart Contract or Decentralized application (DAPP).

Ethereum is a next-generation distributed cryptographic ledger that is designed to allow users to encode advanced transaction types, smart contracts, and decentralized applications (DAPP) into the blockchain. Ethereum will support custom digital tokens, financial derivatives, and much more. The Ethereum network is one of the largest and most widely used blockchain networks in the world. It is also one of the world’s most significant open-source projects with go-ethereum being one of the largest projects on Github. Since its first release in 2015, Ethereum has been making strides towards its ultimate goal of becoming a decentralized global computer that could one day replace many of the centralized applications that we use in everyday life.

Ethereum 2

Ethereum 2.0, also called Eth2, is the next upgrade to the Ethereum blockchain. Ethereum 2.0 will be released in multiple “Phases” starting in 2020 with Phase 0. Each phase will improve the functionality and performance of Ethereum in different ways.

Why Ethereum 2 matters

A diverse range of developers relies on Ethereum to build their Dapps. Everything from games to decentralized finance services has been created using this blockchain, which is especially popular because of its smart contract capabilities. As the adoption of these applications grows, it’s essential that the network can cope with the demands of thousands of users around the world simultaneously. We’ve already seen an explosion in the value of the assets that have been locked into DeFi protocols – enabling people to borrow funds by using digital assets as collateral.