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In this paper we have studied and carried out performance evaluation of Peer-to-Peer (P2P) networking in context of satellite image processing. The application scenarios identified are sharing of satellite image data, P2P enabled nowcasting and forecasting and sharing of distributed computing resources using P2P. JXTA is used to setup a P2P based network and the peer discovery and peer bootup aspects are investigated. Satellite image data transfer; satellite image metadata discovery and P2P based distributed computing for automatic registrations of large number of images are used for performance evaluation.