Skype is a proprietary peer-to-peer Internet telephony (VoIP) network. It has achieved rapid growth in usage and software development since its launching, both of its free and its paid services. The Skype network can scale very easily to large sizes just over hundred million users without an intricate and exorbitant centralized infrastructure. It is free in the beta phase. Skype is a prominent VoIP category product worldwide, with near sixty million people are registered to use Skype's free services. Moreover, more than three million people using Skype concurrently at any one time. Every Skype user must have the Skype software downloaded on his computer. This software is currently available free of charge but the software is proprietary.

The security of internet communication has become an issue therefore, people are more aware and want secure communication feature in the products they use. Skype is well designed to automatically encrypt calls, file transfers and chats before sending it through the internet. All Skype traffic is encrypted by default and the user cannot turn it off. There are some flaws in security especially in the area of the global Skype network that is, searches for contacts, and connection via supernodes, are trusted without asking for authentication. You can use the system without revealing your identity to other users of the system, but also you have no authenticity that the person you communicate with is the one they say they are in real life.
User can make free calls with the Skype PC-to-PC calls over the Internet to anyone else who also has Skype. All you need is a PC microphone and speakers or a basic USB headset, PC running Windows 2000 or XP required for video call, a web cam, if you want to make video calls. Broadband connection is best through cable service.

Skype has added innovative features that are quality-rich. There is a facility to search the Skype database, so that you are able to build a list of contacts. When you have people on your list, you can see if they're online, offline, busy or not sitting at their computer right now. Importing contacts is the facility that allows you to find people among your contacts who are already on Skype. SkypeOut is a cheap way to use your computer to call landlines and mobile phones all over the world. SkypeIn is a number your friends can call from any phone. Skype Voicemail takes your calls when you are busy or offline; skype SMS gets you in touch with friends instantly when they are not online. However, free features are: Call anyone else using Skype, throughout the world. You can have a group-chat with up to hundred people as well as conference calling with up to four people simultaneously. However, there are some limitations with the use of skype system. It is totally computer-dependent and caters to computer consumers, the calls made to landlines are of low quality and Skype does not offer much calling features.