What is a p2p exchange?
A p2p (peer-to-peer) exchange is a decentralized cryptocurrency exchange where the participants of the market trade cryptocurrencies directly with each other without any trusted third party to process all trades. The interactions between counterparties on peer-to-peer exchanges are directed exclusively by pre-programmed software, with no requirement for human middlemen.
What are the synonyms?
What industry uses it?
p2p exchange is a term only used in the exchange of assets in the cryptocurrency space.
What are the differences between Centralized Exchanges and p2p exchanges?
The common feature of a centralized exchange is both the buyer and the seller of a digital asset trusts the middleman and the assets are held in escrow by the central servers.
Decentralized exchanges create a trustless environment where they cut out the middleman. Assets are never held by an escrow service and transactions are done entirely based on smart contracts and atomic swaps.
Examples of p2p exchanges:
NeuronEx (To add Link)
Why is it important?
A p2p exchange is an important component of the ‘Decentralization’ aspect of Blockchain as the main features of a decentralized exchange include:
Censorship Resistant : Regular cryptocurrency exchanges are run by people and hence, they are vulnerable, and may be exploited by governments by imposing regulatory restriction.
Faster and cheaper : It facilitates faster, cheaper and more cost-effective crypto transactions than centralized exchanges. The removal of the third-party authenticator drastically reduces fees and lag time before orders are processed.
High Safety : p2p exchanges like NeuronEx offer safety solutions like 2FA and storage of the private keys on the user’s end.
NeuronEx, an introduction