BitTorrent (BTT): Peer-to-Peer File Sharing Meets Blockchain

The Evolution of BitTorrent Token

BitTorrent is a popular peer-to-peer file sharing protocol that enables users to freely share data and large files like movies, programs, and audio files over the internet. BitTorrent launched in 2001 and, despite not being blockchain-based, has long been a pioneer in decentralized technology due to its peer-to-peer architecture. BitTorrent Inc. was formed in 2004 to manage the ongoing development of the protocol and in 2018 it was acquired by Justin Sun, founder of Tron, whose blockchain has many technical similarities to Ethereum including the ability to host decentralized applications (dApps).

After the acquisition, BitTorrent Inc. launched a new BitTorrent client that integrated a cryptocurrency — the BitTorrent Token (BTT) — that operates as a TRC-10 token on the Tron blockchain. While in past iterations BitTorrent was heavily trafficked in unlicensed software and media, the blockchain-enabled BitTorrent has incorporated licensed works and verified transactions. BitTorrent now claims more than 2 billion users and 200 million BTT wallets in its ecosystem, and both the original BitTorrent web browser and blockchain-based BitTorrent Speed iteration are widely available for use.

How Does BitTorrent Work?

Files downloaded from the internet are often acquired from a single server. BitTorrent offers an alternative method. Instead of downloading a file from a single source, the protocol enables you to download pieces of that file from multiple users on the internet simultaneously who have the specified file on their computers. The file being downloaded is called a “torrent,” while the act of uploading and sharing the pieces of the file is called “seeding.” Likewise, the group of peers who provide the file are called a “swarm.” The speed of the download increases as the number of peers in the swarm increases.

BitTorrent Speed and BTT Token

Despite the widespread usage of the original BitTorrent protocol, users had little incentive to remain connected to the swarm after downloading a file, continuing to seed it to other users. BitTorrent Inc. sought to remedy this by introducing BitTorrent Speed, a new version of the BitTorrent protocol that uses a native BTT token to incentivize users to continue seeding files after downloading.

On BitTorrent Speed, users are classed as either “service requesters,” who offer BitTorrent Token in exchange for other users’ files, or “service providers,” who continue to seed files in exchange for BTT. Service requesters send automated bids to service providers which specify how much BTT they will pay for a piece of a file. After their bid is accepted, the service requester puts the agreed upon quantity of BTT into escrow in a payment channel on a private blockchain ledger. When the piece of the file has been transferred, the funds are sent to the service provider. This transaction is later recorded on the Tron blockchain.

By allowing users to earn BTT for continuing to seed files, BitTorrent incentivizes swarm longevity, which leads to faster download times for users and more readily available files. So while Bittorrent was already an early mover in peer-to-peer networks and something of a harbinger of the oncoming blockchain revolution, it has undergone somewhat of a renovation with Tron-based blockchain implementations solidifying its decentralized credentials. While BitTorrent users can still utilize its web-based client for torrent-based downloads around the filesharing ecosystem, the BitTorrent Speed update represents a robust option with built-in incentivization for users.

Other BTT Token Use Cases

BitTorrent Inc. envisions a variety of BitTorrent-related and BTT-enabled applications beyond the established file sharing protocol. One such product is the BitTorrent File System (BTFS), which is a decentralized file storage system and a fork of the InterPlanetary File System (IPFS) built on Ethereum. Like other decentralized storage solutions, BTFS seeks to offer a decentralized, censorship-proof, cost-effective alternative to centralized cloud storage. Storage in the network can be purchased with BTT tokens and BTT can be used to purchase goods with online merchants via CoinGate and CoinPayments.