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How does IP2IP work?

I heard a lot of discussions mentioning IP2IP at the recent CoinGeek conference in Seoul. I really like the idea of users exchanging transactions peer-to-peer, but I am wondering how IP2IP works on a technical level?

Does it require a daemon/service running on the recipient’s computer that listens for incoming transactions or is there some other approach?

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Which transactions are available from "getrawtransaction" RPC call when "-txindex" is disabled?

I noticed that even with -txindex disabled getrawtransaction RPC call still returns transactions. I assume that without the full index it will still return transactions that node software needs for other reasons (wallet transactions, UTXOs, …). But what are those cases? Which types of transactions are available even without the full transaction index? And what happens if I request a transaction that is not available?

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To Bitcoin or not

Bitcoin is all good and well and I am also invested in it. My question is what will happen when governments take control of Bitcoin? Look what happened way back on April 5, 1933 when Roosevelt declared all privately owned gold illegal. Will this happen again? If so, then is Bitcoin the alternative?

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