Historically defined as a NAP (Network Access Point). Typically, it depicts a node on a carrier backbone that is used to provide access to a region, network of users or another carrier. It can also be used to define a location (physical data center/carrier hotel) where multiple providers converge to peer or provide transit to other providers. Peering is a method of traffic exchange which occurs at no cost to either provider because it is mutually beneficial to do so. Transit refers to providing access/bandwidth from one carrier to another for a fee.