Libp2p is a modular network stack designed to facilitate peer-to-peer communication in decentralized applications. It allows developers to create applications that can connect and communicate directly with each other without relying on a central server. This flexibility enables various protocols and transport methods to be used, making it adaptable to different use cases. The framework is part of the IPFS ecosystem and supports features like peer discovery, transport abstraction, and secure communication. By using Libp2p, developers can build robust and scalable applications that enhance user privacy and resilience against censorship.