File sharing usually follows the peer-to-peer (P2P) model, where the files are stored on and served by personal computers of the users. Most people who engage in file sharing on the Internet both provide (upload) files and receive files (download).

P2P file sharing is distinct from file trading in that downloading files from a P2P network does not require uploading, although some networks either provide incentives for uploading such as credits or forcing the sharing of files being currently downloaded. Napster started this whole wave and has since became a legal spot for downloads with a fee schedule.