Blog: P2P

File sharing is the process of distributing multiple programs or documents across a number of platforms. You can file share through portable storage like USBs or you can share online through platforms like DropBox. P2P File sharing is a type of file sharing where two peers directly share files with each other. One way you can use P2P file sharing is by sending each other different types of media like music and movies. A more useful P2P file sharing example is lending each other money online. A company known as Lending Club allows people to invest and put in money that other people can loan out (Kaufman). The investors make a sizable return on their investments and the borrowers have lower interest rates to pay off. Overall the system of loaning out to each other outside of banks can be useful especially for those that do not have the time or luxury to build their credit score. The only concern that comes from this P2P file sharing of money is the insurance of payment. What would happen if someone doesn't pay back their loans? Are there certain insurance policies in place that will ensure investors won't lose their money and that borrowers will pay back in timely fashion.

Reference

Peers Find Less Pressure Borrowing From Each Other May 10, 2013 http://www.npr.org/blogs/alltechconsidered/2013/05/10/182651552/peers-find-less-pressure-borrowing-from-each-other