Local file sharing transfers data directly between devices on the same physical network, like an office LAN or home WiFi. Unlike cloud services (Google Drive, Dropbox) where files are uploaded to the internet, local sharing keeps data confined within a private network. This involves connecting devices to a shared server, NAS (Network Attached Storage), or enabling direct peer-to-peer sharing features built into operating systems.

Its primary application is for teams collaborating within a secure, on-site environment, such as sharing large project files between coworkers without internet dependency. At home, users might stream movies from a NAS to TVs or share photos between family computers without uploading them online. Industries from healthcare to manufacturing use it for internal document management and real-time resource access.

Key advantages include significantly faster transfer speeds compared to cloud uploads/downloads for large files and enhanced security as sensitive data never leaves the local network. Drawbacks involve accessibility—files are generally unavailable remotely without complex setups—and reliance on maintaining the local network infrastructure. While avoiding cloud provider surveillance and potential breaches is a security pro, securing the local network itself remains critical. Future developments focus on making local sharing simpler and more secure, balancing its speed advantage with the convenience of cloud systems.