Abstract: The present invention and its embodiment propose a P2P based reconfigurable computing system and method for the design and reconfiguration of structured overlay networks, and data distribution and running application along overlay networks. The system includes a group of peer nodes, a console and a graphical user interface control panel for interconnection reconfiguration and application management. The system provides a platform to design, and to deploy and to run distributed computing applications over a plurality of peer nodes. The data distribution method together with optimal network topology makes it efficient to distribute data among distributed computing components. The computer aided design tool helps in finding the optimal topology for given types of applications, it provides configuration computing and generation and deployment which make the design and operation of applications automatic.