A method and apparatus for enhanced data storage in peer-to-peer (P2P) networks. Users subscribe to a P2P storage network that allows each user to store files on the storage network by swapping blocks of the user's files with blocks from storage of a peer, or peers, on the network. A user desiring to utilize the storage network for a certain data block must take back an equal, or substantially equal, storage block from another peer on the network thereby insuring no net change, or minimal net change, in total storage across the P2P storage network. In addition, the diffusion of data blocks throughout the storage network is employed whereby individual peers swap data blocks on a random basis thereby further enhancing the security of the swapped blocks from direct attacks.