As reported on Gizmodo, thanks to Core, a hardcore iPhone hacker, native P2P is now possible on the iPhone. 

Based on the torrent app Transmission for the Mac, P2P file sharing can now be done using the premiere mobile phone from Apple. Unfortunately, while the prospects of having a portable P2P client are indeed exciting, this is not yet the promised land for mobile file sharing. For starters, installation isn’t as simple as running installer.app and it uses a command-line interface. Data communication is also limited to Wifi which, in a way, makes sense since its faster and more stable but the option to go EDGE would have been nice.

The whole process also takes its toll on the battery life of the iPhone so it won’t be advisable to make it your no. 1 device for torrent downloading. Nevertheless, this is a welcome development and is sign of the many good things to come.