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We propose a new scheme for content distribution of large files that is based on network coding. With network coding, each node of the distribution network is able to generate and transmit encoded blocks of information. The randomization introduced by the coding process eases the scheduling of block propagation, and, thus, makes the distribution more efficient. This is particularly important in large unstructured overlay networks, where the nodes need to make block forwarding decisions based on local information only. We compare network coding to other schemes that transmit unencoded information (i.e. blocks of the original file) and, also, to schemes in which only the source is allowed to generate and transmit encoded packets. We study the performance of network coding in heterogeneous networks with dynamic node arrival and departure patterns, clustered topologies, and when incentive mechanisms to …