Peer To Peer. Normally expressed fully as 'peer-to-peer', this is an increasingly significant and hugely influential concept, particularly when contrasted with traditional B2C (Business-To-Consumer) business models. Also called C2C (Consumer To Consumer) the P2P term was popularized in the 1990s, first describing computers connected via the internet to each other as mutual servers, to enable file-sharing, most famously for illicit music downloading. Since then the term has come to refer more generally to direct communications or transactions between people considered equals, where no hierarchy or authority or 'middleman' is required, other than the communications/transactions technology. Peer means a person of equal status and derives from Latin 'par' meaning equal. The P2P concept is fundamentally enabled by the internet and related technologies, and threatens/promises to alter dramatically how the world is organized, specifically the nature of major services which have traditionally required a hierarchical/supplier structure, but which now given modern computerized technology, connectivity, and data-handling, arguably no longer require such a processing/coordinating body. Banking and insurance are two obvious examples. Banks traditionally existed because a 'middleman' or agent was required to keep cash securely, and to broker arrangements between lenders and borrowers. Insurance traditionally operates in a similar way, by which brokers underwrite risks, but basically insurance claims are paid from the funds which are created by premiums from those seeking to insure themselves. Peer-to-peer systems effectively cut out the middleman. Advocates and developers of peer-to-peer services typically ask: Why pay for a bank or an insurance company - and for all their infrastructure, running-costs, profits, etc - if the service is instead available direct, peer-to-peer, at a fraction of the cost or for free? P2P concepts now extend to the issuing and operating of currency, to further education, and to major parts of the media, news, music, publishing, etc. The potential of P2P methodology to change the world is considerable. Modern communications technologies - enabling peer-to-peer services of all sorts - are progressively causing traditional 'bricks-and-mortar-based' organizations to become uncompetitive, cumbersome, and obsolete, especially where infrastructure is unnecessarily expensive and/or investors/owners/directors/executives seek unduly high rewards. Just as early 'cottage industry' was effectively wiped out by the Industrial Revolution, we can now anticipate many aspects (and corporations) of traditional commerecial/industrial supply to eventually be rendered obsolete, by a newer more efficient 'nil-corporation' P2P revolution, (which ironically could enable a newly resurgent P2P-connected 'cottage industry mark II').
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