Improving Efficiency and Fairness in P2P Systems with Effort-Based Incentives

Most P2P systems that have some kind of incentive mechanism reward peers according to their contribution, i.e. total bandwidth offered to the system. Due to the disparity in bandwidth capacity between P2P users on the Internet, the common effect of such mechanisms is that the fastest peers reap the highest benefits. We take a different approach and study how to incentivize cooperation in P2P systems based on effort, i.e. contribution relative to capacity. We make the following contributions: 1) we argue that contribution-based incentive schemes in P2P systems unnecessarily disfavor slow peers and decrease overall system performance; 2) we advocate the use of principles from an alternative economic vision, Participatory Economics (Parecon), to inspire systems to be fair and to ensure maximization of the social welfare while being efficient at the same time, and 3) we present the results of simulations in which we apply principles from Parecon to two popular real life systems: a) the popular file sharing BitTorrent protocol; b) a generic credit based sharing ratio enforcement scheme. Our approach yields a higher system performance and fairness and offers new insights into P2P incentive design.