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Lets suppose you want a movie, and you don't want to pay for it. Well you could find someone who has the movie, and using Peer To Peer (P2P) software, you could download the movie from them.
The problem with that is that his internet connection gets killed while you are sucking the file off his computer. So instead of getting the entire file from one person, a torrent allows you to grab the nessecary pieces of the movie from many computers at the same time. Instead of hitting one computer to get all of the pieces of Star Wars, you might hit hundreds. The amount you download from each client is much smaller. And as more and more people get the movie, there are more sources available.
There is a torrent file that you download to get the process started. This file contains the instructions for where to find the pieces and how to put them together.
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