What is Peer-to-Peer?

Peer-to-peer (P2P) is an important concept that refers to a system where individuals can interact or transact directly with each other without the need for intermediaries. This system is decentralized, with each participant having an equal role and the potential to communicate directly with other participants.

In the context of crypto, P2P allows users to conduct digital asset transactions directly between individuals, which is different from traditional banking systems that involve intermediaries. This efficiency not only reduces transaction costs but also speeds up the process. P2P is also the basis for many decentralized exchanges (DEX), enabling direct trading of crypto assets between users.

Additionally, due to the lack of a central point, P2P networks are more resistant to interference or censorship, supporting the principles of freedom and censorship resistance. Outside the crypto world, P2P is used in a variety of other applications, including file sharing and media streaming, reflecting its flexibility and power as a technology model.

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