What is peer-to-peer (P2P)?
Peer-to-peer, or P2P in its abbreviated form, refers to computer networks that use a distributed architecture. It refers to a network of computers that interact with each other without relying on a central server. The computers or devices that are part of a peer-to-peer network are called peers. Each peer from a peer-to-peer network is equal to the other peers. There are no privileged peers, and there is no central administrator device in the center of the network.
In a way, peer-to-peer networks are the socialist networks in the world of computing. Each peer is equal to the others, and each peer has the same rights and duties as the others. Peers are both clients and servers at the same time.
Furthermore, every resource available in a peer-to-peer network is shared among the peers, without any central server being involved. The shared resources in a P2P network can be things such as processor usage, disk storage space or network bandwidth.
Peer-to-peer communication exists since the birth of the internet. Peer-to-peer exchange of value however has only been possible very recently; since the introduction of the Bitcoin protocol.
Furthermore, the application areas of smart contract technology are endless, one of the popular applications being studied a lot is trading of financial instruments. Rules, such as know-your-customer checks, can be programmed in the smart contracts to enforce legally binding peer-to-peer exchange of a financial instrument. A smart contract ecosystem allows to cut out costly third parties while preserving trust. It is our mission to create honest and secure peer-to-peer markets without the traditional middlemen.
Bitcoin has proven that a peer-to-peer electronic cash system can indeed work and fulfill payments processing without requiring trust or a central mint. However, for an entire electronic economy to be based on a fully decentralized, peer-to-peer solution, it must be able to meet the following:
- To process transactions securely, quickly and efficiently, at the rate of thousands per minutes or more; provide incentives for people to participate in securing the network; scale globally with a minimal resource footprint;
- To offer a range of basic transaction types that launch cryptocurrencies past the core feature of a payment system alone;
- To provide an agile architecture that facilitates the addition of new core features, and allows for the creation and deployment of advanced applications; and
- To run on a broad range of devices, including mobile ones.
As a disruptive technology, P2P creates significant opportunities and challenges for the Internet, industry, and society. Arguably the most significant promise of P2P technology lies in its ability to significantly lower the barrier for innovation. We can see peer-to-peer is a complex technology that was born and based on a simple principle: decentralization. WCG satisfies all these requirements as it eliminates the massive computing power and competition in Proof of Work (POW) which shows that WCG is a 100% Proof of Stake (POS) cryptocurrency.