Mary Amakihi 
In-depth Analysis: How P2P Networking Enhances Blockchain Security
Peer-to-peer networks offer greater security as opposed to standard client-server systems. This article will analyze how P2P networking enhances blockchain security.
Peer-to-peer (P2P) technology is founded on decentralization, which allows network participants to conduct transactions without using a middleman, intermediaries, or a central server.
Bitcoin is based on peer-to-peer technology, meaning no administrator is necessary to keep track of user transactions on the network. Instead, the network peers work together to conduct transactions and maintain the BTC.
A blockchain network’s peers are nodes or machines with the same jobs and power. Blockchain is a peer-to-peer network that works as a decentralized ledger for one or more digital assets.
It is a peer-to-peer system in which each computer stores a complete copy of the ledger and verifies its authenticity with other nodes to ensure the data is accurate.
In contrast, bank transactions are kept private and are only monitored by the bank.
The security of the underlying consensus methods and transaction privacy are all inextricably linked to its implementation, making the P2P network a critical component of blockchains.
However, no universal P2P protocol for blockchains has been proposed. Instead, other cryptocurrencies have created and modified their peer-to-peer protocols.
What is P2P Networking?
P2P networking is a system of decentralized networks of networked computer systems that comprise peers or nodes.
All nodes are equal, and data is exchanged without using a central server; each computer or node can function as both a file server and a client.
When serving as a client, for example, a node downloads data from other participants; when operating as a server, it can be a downloading source.
Simply said, peers or participating computer systems can simultaneously consume and give resources on the same network. Files, storage, access to a scanner or printer, and computing power are all examples of resources.
There is no single point of failure or centralized authority. All networked nodes can store, distribute, and upload files. Peer-to-peer — P2P — transactions occur directly between the two people involved, with no intermediary.
P2P Networking Architecture
Peer-to-peer networking architecture is a type of network in which there is no segregation of operations among different parts.
Every node performs the same duty and set of operations, and each device provides the server and client functions.
Under this paradigm, the response of network architecture developed over the computer networking ecosystem is that each workstation is responsible for equal tasks.
Still, fewer devices are connected to the central server. Peer-to-peer network design is best suited for residential areas and small-scale companies in rural areas.
This is because, in such networks, each device acts as an independent workstation that can save the whole data collection in its database.
Simply put, the generic peer-to-peer architecture is developed with the functionality of a single software program in mind.
As a result, each program is responsible for carrying out its mission while also playing the roles of client and server, with similar obligations and powers.
Let’s move on to discussing the types of P2P networking that we have.
Types of P2P Networking
There are three types of P2P networking they are;
- Structured networks
- Unstructured networks
- Hybrid networks
Structured Networks
Structured P2P networks are set up so each node can search for and identify resources, including the most scarce files. They primarily employ a distributed hash table, which associates each file with a specific peer.
This makes it simple for participating nodes to retrieve key-value pairs.
This efficiency, however, comes at a cost. Structured networks need nodes to memorize a list of neighbors who meet specified requirements.
Because of this lack of adaptability, they are less effective in networks with significant churn rates.
Unstructured Networks
Unstructured networks are the most frequent and accessible setup type of P2P. An amorphous network’s nodes are connected randomly, with no structures imposed on them. This enables local optimization.
Unstructured networks are stable and can sustain high churn rates — the frequency with which peers leave and rejoin the P2P network — since all nodes execute the same job.
On the flip side, the unstructured nature makes identifying and retrieving less common files challenging. To identify as many peers as possible who have the desired file, the requesting peer must flood the network with the search query.
Flooding consumes a large amount of memory, and because each peer is not assigned a specific content, there is no guarantee that the flooding will find the desired file.
Hybrid Networks
P2P hybrid models mix the client/server and peer-to-peer models. A hybrid model often includes a central server that provides centralized structured server/client functions, such as assisting nodes in finding one other, and the decentralized aggregation offered by node equality in a pure, unstructured peer-to-peer network.
Hybrid P2P models typically outperform traditional P2P models because they integrate the advantages of organized and unstructured peer-to-peer networks.
We mentioned the Client/server model in our explanation above; wondering what that is? Let’s get that cleared up.
P2P vs. Client/Server System
To hit the nail on the head, the key distinction between the two systems is that in Client-Server, there is a dedicated server and specialized clients, whereas, in P2P, it is maintained by a dispersed network of users, with each node capable of acting as both a server and a client.
An Instance of P2P Networking in Blockchain
P2P architecture, as an essential component of blockchain technology, controls cryptocurrency transactions.
Cryptocurrencies take advantage of the power of peer-to-peer blockchain technology, allowing them to be exchanged or moved without the intervention of a central body.
A blockchain is a distributed ledger technology that stores transactions openly and permanently. New “blocks” holding transaction data are constantly linked to previously filled blocks, producing a chain of data blocks — hence the term “blockchain.”
The blockchain immutably records transactions in digital blocks, including time-stamped information about senders and receivers.
Because no centralized authority operates the network, only participating nodes may validate transactions between themselves.
When Satoshi Nakamoto created Bitcoin in 2008, he envisioned developing a “peer-to-peer electronic cash system” (see title of original white paper) that functions trustlessly and without an intermediary.
Because they support a decentralized ledger of transactions, peer-to-peer networks are an important component of blockchain technology.
The system is “trustless,” in the sense that the network’s architecture ensures the integrity of the transactions.
This is where the underlying decentralized concept of peer-to-peer blockchain comes into play.
These chains are not stored in a centralized location or on a regulatory server but are distributed to all network nodes (even globally).
As a result, each node has a copy of the blockchain (and transaction information), protecting and authenticating network data.
How P2P Networking Enhances Blockchain Security
As a result of P2P networking, blockchain is more transparent, egalitarian and democratic.
The transparency of blockchain is one of P2P networking primary benefits. Every transaction is recorded on the blockchain, making it simple to follow the movement of funds and eliminate fraud and mismanagement.
Traditional financing arrangements, which rely on middlemen to manage transactions, cannot provide this level of transparency.
P2P networking enhances blockchain security by promoting an egalitarian system. This is a situation where rights and opportunities are shared among people and not reserved for a central authority.
It assures that no single individual or institution has power over the blockchain.
The Future of P2P Networking
Blockchain-based peer-to-peer networks perfectly illustrate how technological improvements are enabling new use cases for P2P networks.
Blockchain technology, for example, can provide a safe and transparent mechanism to track and verify transactions without a centralized authority.
Cryptocurrency is an example of this, as it is supported by Blockchain technology and enables secure and decentralized transactions.
P2P networking, with the emergence of cloud computing, can be used to share resources in a decentralized and transparent manner, resulting in more effective resource use and cost savings.
Golem, a decentralized P2P network that allows users to rent out computer power for various benefits, such as producing graphics or scientific computation, is a good illustration of this.
Conclusion
P2P has become the fundamental technology of many services and applications due to its dependable, decentralized, and secure structure.
P2P networks are used in file-sharing apps, online marketplaces, and open-source software.
Cryptocurrencies and distributed ledger technology are hallmark examples of the P2P paradigm, giving amazing security and more transparency in the financial sector.