What is a P2P VPN, and how does it work?

When you use a virtual private network (VPN), you’re trusting a company’s app and servers to protect your data. A peer-to-peer (P2P) VPN challenges that model with a different idea: what if the users are the network?

In this decentralized system, your traffic is routed through other participants, also known as peers, and your connection is used in return. However, this approach can introduce unique security, privacy, and even legal risks, depending on the quality of the network and who else is using it.

This guide explores how a P2P VPN works, what you need to consider before using one, and why a quality commercial VPN is generally a better choice.

What is a P2P VPN?

With a P2P VPN, each node or connection, such as a router, printer, network switch, or computer, connects directly with the others to share resources, such as files, data, or processing power.

Unlike a standard commercial VPN that uses a client-server model, a P2P network doesn’t necessarily have a central entity controlling the network. In this architecture, every participant is a peer who can potentially act as both a client (a consumer of resources) and a server (a provider of resources).

This means that instead of connecting to a server owned by a single company, users connect to one another, sharing resources like bandwidth and their IP addresses to create the network.

Of course, this means that the performance and security of your connection can be highly variable, as you’re depending on the functionality and trustworthiness of every other node. With a reputable commercial VPN like ExpressVPN, on the other hand, you get centrally maintained RAM-only servers and an audited no-logs policy that ensures none of your data is collected and stored.

How a P2P VPN works

In a commercial VPN, your device connects to a server owned and managed by the VPN company. A P2P VPN, on the other hand, runs on user-operated nodes. Every participant functions as a node, and your internet traffic is encrypted and routed through other users. Depending on the business model of the P2P VPN, your bandwidth and IP address are made available to route traffic for others in a continuous, reciprocal exchange of resources. This can introduce additional security and privacy risks.

Some systems route your traffic through several peers in sequence, adding a layer of encryption at each hop (this is called multi-hop or onion routing). Others use a single encrypted hop to an exit node. In either setup, the websites you visit see the exit node’s IP address, not yours. You function as a client by default and only become a relay or exit node if you install and run the required software.

The technology behind P2P

For a client to join a P2P network, it must first find other peers. This can be done using several methods, including:

• Distributed hash table (DHT): This works like a collaborative index for a global library. No single participant holds the entire index; instead, each holds a small piece and knows exactly where to direct queries to find a specific resource. This structure allows your client to locate other users efficiently without a central coordinator.
• On-chain directory: In this model, nodes register on a blockchain so clients can look up providers in a decentralized, auditable ledger (think a public registry rather than a single company-run directory). This records identities, reputation, and metadata on chain.

In either case, once you make these initial connections, the broader network reveals itself to you. Once you’re in, there are also runtime health checks: blockchains and DHTs are combined with off-chain pings, gossip, or indexers to confirm which peers are currently reachable.

To encourage people to share their bandwidth, some of these platforms also have built-in economic models and incentives. Users who contribute their connections to the network may receive some form of benefit, either financially or through an extension of their subscription.

This incentive system helps ensure there are enough nodes to keep the network running and provides a reward for supporting the community.

How P2P VPN differs from commercial VPNs

Here’s how a P2P VPN stacks up against a commercial VPN. Note that the quality of P2P VPNs can vary a lot and can also be hard to assess.

Perhaps the most important difference of all listed above is that the P2P VPN model doesn’t eliminate the need for trust, it redistributes it. Instead of relying solely on a central provider, you also have to trust the network’s node operators, who could be anyone. This adds complexity and poses additional security risks unless you build your own P2P network with explicitly trusted peers, which isn’t realistic for most users.

While spreading traffic across numerous nodes makes it difficult to trace online activity back to a single user, it’s vital to know that the first node always sees your IP. What’s more, it might see your traffic as well if the VPN technology isn’t well-designed; misconfiguration or weak clients can degrade privacy, even with layered encryption. This means you’re putting your trust in the provider’s infrastructure (which can be hard to verify), and the first node your traffic passes through.

When you’re part of a P2P VPN network and decide to become an exit node, you’re letting anyone use your router for whatever they need, and this presents obvious legal risks. If someone uses your exit IP address for any kind of prohibited activity, you could receive a notice from your internet service provider (ISP) or even face legal action. What’s more, the decentralized nature of P2P VPNs means internet traffic often routes through multiple countries with varying legal frameworks, adding another layer of legal complexity.

Apart from privacy and legal risks, there are also security concerns: it only takes one malicious node to monitor unencrypted data, attempt to inject malware, or analyze your traffic patterns, posing a direct security threat.

In contrast, when you choose a commercial VPN provider, you’re trusting the company with your data. Just as with a P2P VPN, it’s important to choose carefully, as not all commercial VPNs are created equal, and there are some products that might sell or log your data. However, unlike with P2P VPNs, it’s fairly easy to verify this information.

For example, ExpressVPN has passed multiple third-party audits confirming the validity of its no-logs policy, privacy policy, protocols, apps, and server technology.

What is a P2P VPN used for?

Peer-to-peer (P2P) VPNs are a niche technology, but they can serve a few specific purposes:

• Research and experimentation: Some developers and researchers have used decentralized networks to explore how internet connections can remain resilient without relying on central servers.
• Community bandwidth marketplaces: Certain projects, such as Mysterium and Orchid, allow participants to share or trade unused bandwidth, supporting the network’s capacity and reach.
• Extending network reach: In places where traditional VPNs have limited server coverage, peers in those areas may act as temporary “exit points,” though this depends entirely on who is connected and comes with privacy and reliability trade-offs.

How to assess a P2P VPN

If you’re considering using a P2P VPN, here’s what you need to check before committing.

Information on the developers and code

While the network is decentralized, the technology behind it was created by developers. It’s a good idea to research who it was developed by, the reputation of the organization behind it, and whether the code is open-source and is actively maintained and reviewed. You can also check for third party audits, but these are fairly rare with decentralized VPNs.

Strength of encryption

A VPN is only as secure as the encryption that protects your traffic. Some P2P VPNs use proven protocols like WireGuard and OpenVPN, while others rely on custom or experimental cryptography. Always check the technical documentation, GitHub repository, or whitepaper for details on the encryption protocols used, and look for 256-bit Advanced Encryption Standard (AES), ChaCha20 or equivalent proven and secure ciphers. You should also check whether the encryption protects against quantum threats through the use of hybrid Rivest–Shamir–Adleman (RSA) and Module Lattice-Based Key Encapsulation Mechanism (ML-KEM) keys. If you can’t find this information you should exercise caution, as transparency about cryptographic design is standard for established products.

Reliability and verification of nodes

One of the major risks of a P2P VPN is that your traffic passes through strangers’ devices. For this reason, it’s really important to check how the nodes are verified and incentivized and what protections are in place to prevent malicious peers from intercepting your traffic. Review the VPN’s technical documentation to find details on these aspects.

Multi-hop or onion routing options

One of the strongest privacy protections a P2P VPN can offer is multi-hop or onion routing (where traffic is encrypted and passed through two or more servers before reaching its destination). When assessing a provider, look for explicit mentions of multi-hop or onion routing in the technical documentation. Also, check for details on whether information is encrypted across all hops, and if possible, check the project’s GitHub or white paper for details on how paths are built and verified.

Note, however, that even if a P2P VPN provider advertises multi-hop, there’s no guarantee every hop is configured securely.

Customer support

Unlike commercial VPNs, P2P VPNs rarely offer comprehensive customer support. If being able to access support for aspects like device setup and troubleshooting is important to you, you should look carefully at how the P2P VPN defines “support.” For example, does it offer live chat and email tickets, or just community forums? Also, is support restricted to paid users? Check the site for documentation, FAQs, and community resources, too. Good self-help materials matter, especially if direct support is minimal.

Size of network

The quality of a P2P VPN depends on how many participants are online and how evenly they’re spread across geographic regions. A large, geographically diverse network will generally offer more routing options and less congestion. However, node counts can fluctuate dramatically, especially if participation relies on token rewards or volunteer activity. To assess this, check whether the project publishes live network statistics. You can also explore community forums to check how active the network really is.

User reviews and ratings

Real-world feedback from users can help to reveal recurring issues like instability or node reliability. Check independent sources like Reddit, Trustpilot, or app store listings, and look for consistency across multiple platforms. Also note the frequency and responsiveness of developer replies, because active engagement is more likely to signal a legitimate project.

Overall, if you want reliable encryption, clear accountability, and consistent performance, a reputable commercial VPN like ExpressVPN is the more practical choice for most users.