Imagine the file you’re trying to download is a large poster, but for whatever reason you can’t get the entire poster at once. So instead, you get a jigsaw puzzle of the poster, and you get sent one piece of the puzzle at a time from a bunch of different people who want the same poster, and when you get a piece, you start sending copies of it to other people who want the poster as well.
As for why it fell in popularity, Netflix. Torrents were heavily used to pirate movies and TV shows, when Netflix and streaming came along and was easier to use than torrenting, people just streamed instead.
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