Peer-to-Peer systems have become one of the most popular applications in the Internet during the last ten years due to the fact that it supports filesharing applications with much faster speed than that of traditional technologies and aggregates a large amount of resources of Internet at a low cost of system maintenance. In existing overlay P2P system, although the overlay network has small hops path, the actual latency may be very large since the neighboring nodes in overlay network is formed by hashing their identity and IP address, so that it is possible that neighboring nodes actually have long physical path such as route hops. In order to address this issue, we, in this paper, apply the idea of small world to the P2P systems to achieve short average path and high clustering coefficient.
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