Peer-to-Peer (P2P)

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Table of contents

1. 0.2. How P2P Works in Blockchain
2. 0.4. Why It’s Fundamental to Crypto

Peer-to-Peer (P2P) refers to a decentralized network structure where participants (or nodes) interact directly with each other without relying on a central server. In blockchain and crypto, P2P systems enable users to trade, share data, or validate transactions independently.

How P2P Works in Blockchain

In a P2P blockchain network, every node stores a copy of the ledger and contributes to validating transactions. This structure supports censorship resistance, enhances security, and distributes control, making it harder for any single point of failure or attack to compromise the system.

Why It’s Fundamental to Crypto

The peer-to-peer model underpins the decentralized ethos of blockchain technology. By allowing individuals to transact directly and verify data without intermediaries, P2P ensures greater transparency, trustlessness, and autonomy in digital systems.