The fact that you are think that you are looking to understand more about this complex world: that of cryptocurrencies. Besides, you understand that it has a unique potential, right?
If the answer is yes, the first step you must take is to understand how one of the biggest benefits of Cryptocurrencies works: the elimination of intermediaries through “Peer-to-Peer” or “p2p”.
What is p2p?
Although it sounds like a complex term, the idea behind it is simple and intuitive. Translated as “point-to-point”, it is a system that allows data transfer without the need for third parties in any service provision.
That way, you can download the series directly from your friend, without having to pay to host the file of interest on a server to download it later. With the p2p network, everything is much simpler and faster, since there are no intermediaries.
This is thanks to the Bit network, in which each computer on the network downloads a file and transmits it at the same time to the rest of the network. Thus, the bandwidth usage becomes less, in order to decongest the network. It is also worth mentioning that this same concept of “peer-to-peer” network was also successfully applied in digital currencies.
In addition, there is the security issue: if a file is shared on a p2p network, it is necessary to destroy the entire network to exclude it, which makes it much more secure. On a centralized network, on the other hand, just delete your central server to delete the file.
Therefore, blockchain technology is our ally, (read more by clicking here) as security becomes cheaper and more effective.
How does Peer-to-Peer work with digital currencies?
As previously mentioned, the main revolution that this system provides is the elimination of the need for any intermediary to confirm transactions, as well as their security.
With cryptocurrencies, however, it is enough to indicate the address of the wallet of the recipient and simply send the money. For this reason, the 15% fee paid in conventional transactions – slow process due to third parties – to send an international remittance, is reduced to R $ 0.50 through the use of the Bitcoin technology p2p network, a process that occurs in matter of minutes to anywhere in the world.
End-to-end cryptocurrency trading
Most of the volume of cryptocurrencies is traded at brokers or exchanges, which bring buyers and sellers together on a single website. A distinction is made here between these institutions, since they can operate or not via the P2P system.
Peer-to-peer is also known in the cryptocurrency market as someone who buys and sells cryptocurrencies directly from someone else.
‘Peer-to-peer’ (P2P) or ‘decentralized’ exchanges are operated and maintained exclusively by https://cryptoengine.app that directs and enables the exchange of data between users. For this reason, the need for intermediaries is eliminated.
In general, they are living examples of the philosophy of decentralization that we both preach and the great revolution here.
Let us then make a comparison between three forms of transaction in two different markets: P2P and non-P2P transactions in the crypto market and conventional transactions in the traditional financial market.
What are the advantages of P2P exchanges?
Paying attention to the correct mode of use, transactions carried out on P2P exchanges not only provide high resistance to censorship, but are also cheaper than in the traditional financial system. In addition to being private, safe and agile.
Resistance to government intervention:
P2P exchanges, in turn, are practically immune to government interference, as they have no central point of authority that can be coerced. Even though some parts are forced to interrupt their operations, the rest of the system remains unchanged.
P2P exchanges are executed by software, so there is little or no corporate overhead, so there are very small fees for users.
The government cannot impose enforcement regulations on P2P exchanges, which means that trading can be conducted more privately.
They do not have to entrust their bitcoins to a third party, and for that reason, they get the process much safer. Since no one lays hands on your bitcoins other than you, there is no chance that they will be stolen or lost – intentionally, or accidentally.