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In the late 1990s, all this began to change. The world witnessed the development of the first peer-to-peer file sharing models, in which the central server became essentially obsolete. This approach enabled individual computer users to send and receive files without the need for a centralized server.

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One 'peer' literally delivered an entire content file to another 'peer' - hence the name peer-to-peer. In the early years, peer-to-peer technologies were primarily used for transferring smaller text and music files due to the fact that the file transfer was constrained to the upload bandwidth constraint of an individual user transferring the file.