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Skype Launches

Niklas Zennström and Janus Friis prove that P2P networks can be reliable enough for real-time voice communication.

On August 29, 2003, the creators of KaZaA (Niklas Zennström and Janus Friis) released the first public beta of Skype. While known as a VoIP telephone app, the original Skype was a technological marvel of P2P engineering. Unlike modern Skype (which is now cloud-based under Microsoft), the 2003 version had almost no central infrastructure. It routed voice calls entirely through the computers of its users.

Skype utilized "supernodes"—users with fast internet connections—to relay calls for users with slower connections or strict firewalls (NAT traversal). This distributed the bandwidth cost among the user base, allowing Skype to offer free calls globally. Skype was important because it proved that P2P wasn't just for illegal file sharing; it could provide a service (phone calls) that was better and cheaper than the centralized incumbents (telecom companies).

It achieved 100 million users rapidly, disrupting a trillion-dollar industry using P2P routing. The platform's success demonstrated that peer-to-peer networks could handle mission-critical, real-time applications with high reliability, paving the way for the argument that a P2P network could handle the global financial ledger.

Key Sources:
• Skype: About/History
• Wikipedia: Skype
• The Verge: Skype Ten Years Later