What Is P2P (Peer-to-Peer)?
P2P stands for Peer-to-Peer, a type of network where participants interact directly with each other without needing a central intermediary or server. In the context of Bitcoin, it means users can transact directly with one another, anywhere in the world.
Direct Interaction
The Bitcoin network is a P2P system that allows for the direct transfer of value between individuals, cutting out traditional financial gatekeepers like banks.
No Central Authority
In a P2P network, there is no single point of failure or control. The network is maintained by its participants, making it resilient and censorship-resistant.
A Global Network
The P2P nature of Bitcoin allows it to be a truly global and permissionless system. Anyone with an internet connection can participate, send, and receive transactions.
The Foundation of Decentralization
The peer-to-peer architecture is what makes Bitcoin a decentralized system. By distributing the ledger and transaction validation across a network of peers, Bitcoin achieves a high level of security and trust without relying on a central authority.