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bowen li

on 5 November 2013

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Transcript of P2P

Skype: “True P2P, when applied to ripe markets, is disruptive technology”
Digital currency:
Bitcoin: crossed the 1 million download mark
Other Applications:
US Department of Defense uses P2P networks.

Peer-to-Peer File Sharing
Abhijit Nair
Bowen Li
Ladan Khamnian
Preston Lin
Tirna Singh

P2P or Server-Client?
- Background of File Sharing
- P2P networking structures
- Future of P2P
- The Media Market
- Users’ Re-Embrace the Server-Client
- P2P or Server-Client?
- Conclusion

Background of File Sharing
In early 1970’s
The Era of Music Playing
Intangible Sharing
MP3 sensation
The Rise and Fall of Napster
In June 1999, Napster was released as an unstructured centralized peer-to-peer system
P2P Network Structure
P2P and Network
Overlay networks
P2P Over physical Network and TCP/IP
Nodes directly connected over application layer
P2P Architecture
Based on file Listing
- Centralized
- De-Centralized

Based on Node Connections
- Structured
- Unstructured

A centralized server to locate files
All peers are connected and look up the files in this server
This is a semi Client/Server approach
Ensures query to result

Vulnerable to censorship, legal action, surveillance, malicious attack, and technical failure
Considered inherently un-scalable

Pros and Cons for Centralized
No central server
Maybe pure or with super nodes
Gnutella and BitTorrent
Fully scalable
No bottlenecks

No guaranty for query to be resolve

Pros and Cons for Decentralized
An algorithm to connect the nodes
Efficient but complex
Distributed Hash Table most common algorithm
Example BitTorrent
formed by nodes that randomly form connections to each other

A new node gets connection information from its neighbors

Simple but not efficient

Example: Fast Track and Gnutella
P2P networks and client applications
We have the Network and the client application which works with the network

Some of the well known networks are:
Question 1
Why have p2p networks been so successful?

Why do peers contribute to p2p file sharing networks?
Songs downloaded from iTunes only account for 1.5% of total storage space of all iPod that Apple sold, so how about the other?
Is Apple against P2P ?
- iTunes allows external files to be imported

- P2P networks provide rich contents for users with Apple devices

- iTunes is not about selling songs!
It’s about selling Apple's devices!
Is Apple against P2P ?

- free
- wide variety of content
- no restrictions
- decentralized

- not legal (copyright infringement / legal ramification)
- subject to attack
- downloading time varies, not stable
- congestion problem
- no anonymity

Comparison of P2P and Server-Client

- legal
- high reliability
- fast download in developed countires
- metadata
- easy to use ( very user-friendly )
- work seamlessly with seamless (iTunes already lock-in users with iphone and ipod)

- require payment
- restrictions on content (DRM)
- less variety of content
- not work well in developing countries
Challenges for P2P
1. How to deal with lawsuits?

2. How to make profits?

3. How to retain and motivate their users?

4. How to deal with mobile?
Challenges for P2P
Question 4
Who will win the competitive battle over the long run? P2Ps or server-client systems such as Apples iTunes?
- Better infrastructures
- Better user experience
- Less fee
- Legal issues
Server-Client model may get more market share
Hybrid - Spotify
Desktop app
- P2P + Server-Client

Mobile app
- Server-Client
Fact 1:
Server-Client systems and P2P's are actually complementary!
Fact 2:
P2P's actually benefit from the success of Server-Client systems.
You cannot download songs and films
from iTunes in Apple's biggest market - China !
P2P and the Entertainment Industry
Piracy costs the industry $4.2 billion/year
Divergent opinions about implications
Increase downloading caused decreased purchasing

Record Labels
- 4 major: Universal Music Group, EMI Group, Warner Music Group, Sony BMG Music Entertainment
- attempted to battle p2p with subscription based streaming
- MusicNet, Pressplay
P2P and the Music Industry
P2P and the Film Industry
7 major studios
Piracy costs the film industry $3.5 billion in 2004
Legal Actions
RIAA (Recording Industry Association of America)
- launched lawsuits against individuals
Digital Protection vs. “fair rights” use
- SDMI (Secure Digital Music Initiative), DRM (Digital Rights Management)

MPAA (Motion Picture Association of America)
- targeted many of the same p2p networks as RIAA

June 2005 - MGM vs. Grokster
- judge sided with MGM
Users’ Re-Embrace the Server-Client
“Our view is that our biggest competitor is illegal music and P2P services. We always thought that if we offered a better alternative, then those customers would be happy to pay.”

On January 9, 2001, iTunes 1.0 was released at Macworld San Francisco.

iTunes is a media player and media library application developed by Apple Inc. It is used to play, download, and organize digital audio and video on personal computers.

Key Events:
V 1.0: with DRM System: Fair Play (Jan. 2001)
V 4.0: iTunes Music Store (Apr. 2003)
V 4.1: Welcome MS Windows Users (Oct. 2003)
V 6.0: Videos available for purchases through iTunes Store (Oct. 2005)
Why has iTunes been so successful?
How does the business model work?
The Business Model
Why has iTunes been so successful? (Cont')
Bandwidth improvement
Why has iTunes been so successful? (Cont')
First mover advantage:

The alternative to authorized digital goods

Give solutions to weaknesses in P2P.

Unparalleled users’ experiences.

Thank You !
Question 5
How should the music and film industries react to p2p?
Zenter, A. "Measuring the Impact of File Sharing on the Movie Industry: An Empirical Analysis Using a Panel of Countries"
Eddy Cue, Senior Vice President
Internet Software&Service, Apple
Channels of Digital Goods

Why has iTunes been so successful?
Question 3
iTunes is not about selling songs!
Representative of Server-Client
Netflix Accounts for 33% of Peak Period downstream traffic on North American fixed networks - November 2012
While P2P file sharing via BitTorrent continues on a steady decline, accounting for 16-percent of total traffic in Europe and 12-percent in North America at the same time
Source - http://www.tomsguide.com/us/Netflix-BitTorrent-Sandvine-Hulu-HBO-Go,news-16281.html
P2P – Villain or Victim?

P2P only promotes “Sharing”!

No way! P2P promotes “Stealing”!

Will P2P survive the might of Recording/Movie industries?

Should P2P clients go the legal way? They already are…..

Legal Client software – BitTorrent network
140 million downloaders – 100 countries
Installed 90 million times in the last 36 months.
Original DVD/HD quality video content.
Publish your content and you earn money!!

Vuze(previously Azureus)

Hosting and distribution for high quality, open-licensed digital media, datasets, and artwork for Content Creators.
Distributes content with permission from rights holders.
Uses the BitTorrent network.
Earns by charging content creators and through donations.

ClearBits (previously LegalTorrents)

Legit Torrents:
Aggregates freely available Torrents, including video, games and Linux distributions.
It bills itself as hosting 100% Legally Free Media
Community for sharing legal recordings of live concerts of various artists.

Other Legal P2P

Does this signal the end of illegal P2P clients?
Fast, lightweight
Free-of-charge, ad-supported, closed source
BitTorrent client owned by BitTorrent, Inc.
Available across multiple platforms- Windows, Mac OS, Linux
Recently crossed the 100 million users mark.
Questionable content?

3,504,625 Torrents
2,447,731,305 Peers across 17,021 trackers. 
1,366,090 registered members. 
Website Disclaimer:
P2P & File Sharing Technology is completely legal….However, many of the files traded via P2P are copyrighted to their original owners and their rights need to be respected. Check your local laws to find out when file sharing is considered piracy in your country

But need to watch Gravity? No problem...TorrentLegal is here...*wink*wink*shhh*

TorrentPortal = legal?

P2P = Piracy?

Just a means of transmission for users to download files more easily.
It is the content (not the network) that makes act illegal.
Still one of the most effective file-sharing systems in the world.

P2P = Piracy?

Yes, P2P is extremely useful!

Distributing videos and music
Linux releases
File syncing: roll your own Dropbox
Government Uses
UK govt. released large datasets through BitTorrent to show how public money was being spent.
NASA made available large pictures of the Earth.
Game Updates & Downloads
Even Facebook and Twitter move their files internally using the BitTorrent network.
Content Delivery networks

More applications of P2P

Greatest strength: There are so many more applications that are still unknown

Impossible to envision all the different applications of peer-to-peer networking. But the applications of P2P are limitless….

So the Bottom Line is….

The Future of P2P
How many P2P networks would there be in the future?
Question 2
It depends….but they will exist for sure..

With the ever-increasing applications of P2P, there is a high probability of more than 2 networks being in existence..
In our opinion...

Question 5
How should the music and film industries react to p2p?
Embrace the p2p technology
A. Orlowsky, June 2008, "Physical music surprisingly perky, BMR finds" retrieved from: http://www.theregister.co.uk/2008/06/16/bmr_music_survey/
J. Becker, M. Clement, "Dynamics of Illegal Participation in Peer-to-Peer Networks—Why Do People Illegally Share Media Files?
Source: http://mp3.about.com/od/filesharing/tp/Best_Legal_BitTorrent_Sites.htm
Source: http://mp3.about.com/od/filesharing/tp/Best_Legal_BitTorrent_Sites.htm
Source: http://mp3.about.com/od/filesharing/tp/Best_Legal_BitTorrent_Sites.htm
Source: http://news.softpedia.com/news/uTorrent-Used-by-Half-of-BitTorrent-File-Sharers-222185.shtml
Source: http://www.torrentportal.com/
Source: http://www.makeuseof.com/tag/8-legal-uses-for-bittorrent-youd-be-surprised/
Source: http://www.p2pon.com/2012/04/04/illegal-file-sharing-is-not-stealing-says-a-nyt-op-ed/
Source: http://en.wikipedia.org/wiki/Peer-to-peer
Source: https://support.skype.com/en/faq/FA10983/what-are-p2p-communications
But they hardly make any money right? No, they do!!

“Our main source of revenue is off the toolbars we push out, which isn't a great source of monetization, but it's something. You can do the math on how many installs we have and what the monetization of toolbars is, and subtract out the costs of having 50 employees, and you'll get a reasonable ballpark of how profitable we are, although the short answer is very.
Even lousy monetization works well when you have more users than Twitter

- Bram Cohen, Inventor, BitTorrent

Usually, they earn money through:
Paid version with added functionalities
Charging content creators
User donations
Full transcript