P2P File Sharing

File sharing in the most simplest of definitions is the concept of sharing digital information such as documents, multimedia, etc., through a shared network like the Internet. File sharing can be done in many different ways such as a removable storage device like a USB stick or memory card. The most popular method and the subject of this lecture is done trough peer to peer networks.

P2P file sharing simply means transferring digital content from your computer to another user (peer). The process is done through a shared network, usually the Internet via sites like BitTorrent or The Pirate Bay. An early example of P2P file sharing and one most people are familiar with is Napster. Napster was the pioneer in P2P technology and primarily focused on sharing audio files and copyrighted music which ironically was the main reason for its eventual downfall.

A common example of P2P file sharing and one that has been in the spotlight recently is the sharing of audio and video content. According to Brian Stelter's article "Digital Pirates Winning Battle With Studios" illegally downloaded and streamed movies has cost the industry 40% of their annual revenue.  A simple concept has the potential to threaten a multi billion dollar industry and with increased access to the internet there is no telling how much more damage P2P networks can inflict on Hollywood. There had been a lot of controversy surrounding this issue but rather than fighting it, companies such as Spotify and Pandora are using it to their advantage by giving free access to users and generating ad revenue instead.

Another example of P2P technology being used efficiently can be seen in the banking industry with companies such as Lending Club. Wendy Kaufman from NPR describes how Lending Club is using P2P technology to match potential investors with those looking for loans. P2P technology has not only distributed the business models of musicians and actors but the banking system as well which shows the incredible power the technology possess.