IP peering is a type of arrangement in which two or more Internet Service Providers (ISPs) exchange traffic with each other over the Internet. This is done by connecting their networks directly to each other, usually through a dedicated physical link, and then exchanging traffic using the Border Gateway Protocol (BGP). The goal of IP peering is to improve the performance and reliability of Internet connections by reducing the number of hops that traffic has to take between different networks. This can also help to reduce the cost of Internet service, since ISPs can avoid paying transit fees to other networks for the traffic that they exchange with each other.