Definition ∞ A P2P transaction, or peer-to-peer transaction, involves the direct exchange of assets or value between two individuals without an intermediary. In the context of digital assets, this typically refers to cryptocurrency transfers directly from one user’s wallet to another’s on a blockchain network. It bypasses centralized exchanges, banks, or other financial institutions, emphasizing decentralization and user autonomy. These transactions are recorded on the public ledger, maintaining transparency while often offering lower fees and faster settlement times compared to traditional systems.
Context ∞ P2P transactions are a foundational aspect of blockchain technology, upholding its decentralized ethos. News often highlights the increasing use of P2P platforms for trading cryptocurrencies, especially in regions with strict capital controls or limited access to traditional banking services. Debates frequently revolve around the regulatory challenges and privacy implications of such direct exchanges, as authorities seek to monitor financial flows while users prioritize financial freedom.
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