If I'm not mistaken, P2P is exactly that....two players connected directly. They do not connect through an intermediary and then are connected that way. I'm not really a tech head so I'm more than likely wrong. Just my guess.
Usually, dedicated servers are only meant to do a specific process (EX: hosting games, etc). With P2P, the host could be doing other things that would slow down the connection/server.
P2P is peer to peer. If I remember correctly it is where all system worker together to form the game. The down side is that it bypasses a number of security measure that a server gives.
I know dedis are better and more reliable, but I don't really understand the system. thanks.
IronBeaver
As it relates to gaming, P2P is where you are connected directly to another player's device. The P2P devices manage the data exchange between them directly. P2P should be adequate for two to a few players in a co-op game, for example. For a large number of players, as in multiplayer games, a server with sufficient horsepower and bandwidth would be necessary to manage all of the data for effective gameplay. In the case of Xbox Live or the Playstation Network, the game server is actually a large network of co-located servers.
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