A cloud storage service such as Microsoft SkyDrive requires building data centers as well as operational and maintenance costs. An alternative approach is based on distributed computing model which utilizes portion of the storage and processing resources of consumer level computers and SME NAS devices to form a peer to peer storage system. The members contribute some of their local storage space to the system and in return receive “online backup and data sharing” service. Providing data confidentiality, integrity and availability in such de-centerlized storage system is a big challenge to be addressed. As the cost of data storage devices declines, there is a debate that whether the P2P storage could really be cost saving or not. I leave this debate to the critics and instead I will look into a peer to peer storage system and study its security measures and possible issues. An overview of this system’s architecture is shown in the following picture: