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A peer-to-peer network allows two or more PCs to pool their resources together. Individual resources like disk drives, CD-ROM drives, and even printers are transformed into shared, collective resources that are accessible from every PC.

Unlike client-server networks, where network information is stored on a centralized file server PC and made available to tens, hundreds, or thousands client PCs, the information stored across peer-to-peer networks is uniquely decentralized. Because peer-to-peer PCs have their own hard disk drives that are accessible by all computers, each PC acts as both a client (information requestor) and a server (information provider). In the diagram below, three peer-to-peer workstations are shown. Although not capable of handling the same amount of information flow that a client-server network might, all three computers can communicate directly with each other and share one another’s resources.

A peer-to-peer network can be built with either 10BaseT cabling and a hub or with a thin coax backbone. 10BaseT is best for small workgroups of 16 or fewer users that do not span long distances, or for workgroups that have one or more portable computers that may be disconnected from the network from time to time.