Not long ago, the ability to speak to anyone, anywhere, over this relatively new thing called the internet was a massive leap in communicative capability. Better yet, it didn’t cost an arm and a leg like international phone calls, and users could even see each other in real-time. Skype and its peer-to-peer (P2P) video and voice platform delivered the ideal combination of improved service at a lower cost. The way we connect has never been and will never be the same.
Fast-forward and early adopters would be shocked that Skype shuttered its digital doors in May. Microsoft, which owns the platform, is instead favoring Teams in a marketplace now crowded with the likes of Zoom, Discord and Google Meet. But we shouldn’t quickly forget that Skype walked so these other platforms could run, demonstrating the impressive potential of direct communication at scale. In the years since, this method has powered the rise of the Internet of Things (IoT) and made it possible to transmit data more quickly and securely.
Such capabilities reverberate today and continue to shape our digital future. This is precisely why Skype’s end isn’t a loss to mourn but a legacy to celebrate — an enduring influence on how we connect and communicate.
What Is P2P Communication? Why Is It Important?
P2P communication connects users directly to each other, helping distribute the computation load, improve call quality and save on some server costs. This structure, pioneered by Skype, influenced technology including modern video conferencing, file sharing, the Internet of Things and blockchain/cryptocurrency.
The Importance of P2P Connectivity
The death of Skype marks the end of an era. In 2003, its rise brought the internet’s sheer potential into view for many millions of people. It was the first mainstream tool that let us take advantage of quickening bandwidth, cheaper cameras and mass connectivity across the globe. The future had arrived. Of course, being “first” on a large scale was part of Skype’s success, but the real story is how the Swedish company provided high-quality and secure connectivity.
P2P communication was the platform’s bedrock and secret sauce. Unlike traditional systems that route through centralized servers, this technology connected users directly to each other, helping distribute the load and improve call quality (and, not to mention, save on some server costs). This structure was win-win — bypassing expensive telecom infrastructure while delivering faster, more private communications. Heck, we can even trace its importance to the name, with “sky peer-to-peer” shortened to Skype.
This was a revolutionary proof-of-concept that founders and entrepreneurs watched closely. As we’ll see, this success was soon replicated across several sectors, creating an internet before Skype and an internet after Skype.
The Longevity of Skype’s DNA
Looking across the subsequent two decades, it’s easy to see the evolution of P2P as a technology and an ethos. As a technology, Skype and its direct-to-device approach inspired WebRTC (Web Real-Time Communication). This open standard from Google enables P2P communication in web browsers without the need for plugins. Direct streams, distributed workloads and better performance — sound familiar? In fact, WebRTC is now the backbone for modern video conferencing as well as countless other platforms you know and love like WhatsApp, Slack, Facebook Messenger and more. Most users have no idea they’re relying on WebRTC technology — and therefore Skype’s P2P legacy — dozens of times per day.
Likewise, in connected devices, P2P platforms are instrumental in helping move communications away from the cloud, with the potential for data leakage and expensive storage, and enabling direct connections between smart devices. This allows security cameras to stream video directly to user phones, smart thermostats to communicate instantly with mobile apps and home automation systems to respond in real-time without routing data through distant servers. Thanks to performance and security advances like these, IoT is expected to reach nearly 40 billion devices by 2030.
As an ethos — informing how new solutions could and should be made — P2P’s influence is evident. Developers began thinking: If sharing video and voice directly between devices is possible, why not files? Napster, LimeWire, the Pirate Bay and other file-sharing platforms were and are ideological successors of this technology. And then there’s blockchain and cryptocurrency. P2P underpins the public ledgers that allow for decentralization, laying the groundwork for today’s multitrillion-dollar cryptocurrency market and thriving blockchain ecosystem.
The Future Is Still P2P
In hindsight, Microsoft’s acquisition of Skype marked the beginning of its end. The original P2P protocol was altered with a more centralized architecture, bringing things like metadata and connection information under corporate control. And when the pandemic arrived, a golden opportunity to reconnect the world, Skype had already lost its innovative edge to platforms built on the principles it pioneered.
But this corporate misstep only proves the resilience of the underlying technology. Revolutionary ideas transcend their original applications. From video calls to cryptocurrencies and smart doorbells to file sharing, P2P has established a technological paradigm beyond any corporate boundary. The evolution of direct connectivity shifted how we interact and even transact. It can’t be acquired, centralized or shut down.
So, Skype, while it’s sad to see you go, the technological and communication changes you kickstarted will live forever.