Peer to Peer Finance

Definition ∞ Peer to Peer Finance involves direct financial transactions and services between individuals without the need for traditional intermediaries. This model utilizes decentralized networks, often powered by blockchain technology, to facilitate lending, borrowing, and asset exchange directly between participants. It removes the reliance on banks or other centralized institutions, aiming to reduce costs, increase accessibility, and enhance user control over funds. The system relies on smart contracts to automate and secure agreements.
Context ∞ Peer to Peer Finance is a central tenet of the decentralized finance movement, frequently featured in crypto news as an alternative to conventional banking. Reports often discuss the growth of P2P lending platforms, decentralized exchanges, and the potential for these systems to democratize access to financial services globally, particularly in underserved regions.