Bit torrent is a peer-to-peer file sharing protocol invented in 2001 by Bram Cohen. It allows users to distribute large files by breaking them into pieces that can be downloaded from multiple peers simultaneously, maximizing download speeds. The protocol was created as an alternative to traditional client-server downloading which can overload servers and fail if the server fails. It uses a decentralized system where every peer both uploads and downloads pieces of the file from other peers.