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So this only helps with things that me and my friends want, it doesn't change anything for things that only me or only one of my friends want.

Unless by friends you mean the extended circle of people that live nearby..?

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Yes that is correct. Geographical proximity can mean anyone who wants the same data you want and you are in a position to exchange it physically. So it can a friend you meet in college everyday or your neighbor even.

Even if we have never met before? A social network for torrents?

If you have never met before but can exchange data physically -- why not! The requirements of this (summarized) are: 1. Common content, 2. Ability to exchange data physically. And if you are in a LAN, not even that.

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