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How is the does the peers discover each other? Via DHT? Or is it implementing webtorrent?

Most of it uses Dat and IPFS under the hood.

Dumb question.. why do people use dat instead of torrents?

Other dumb question. Are there dat builds for Android? The client is Node I believe.

Torrents are static, dat archives can have updates pushed to them.

There is a BEP for updatable torrents: