File sharing is when people share digital information, such as computer programs, music, movies, documents, and e-books.
P2P file sharing is when people make use of software that connects them to a network where files can be shared between theirs and other peoples computers.
Bittorents and napster are examples of P2P file sharing. According to "ONLINE PIRACY AND THE EMERGENCE OF NEW BUSINESS MODELS," by David Y. Choi from Loyola Marymount University "The
software allowed a user to download files from a multitude of users, rather than a single
individual, on a bit by bit basis, therefore decentralizing the source of the file from any single
storage."
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