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Peer-To-Peer Transactions

Definition

Peer-to-peer transactions involve the direct exchange of assets or value between two individuals without the need for a central intermediary. In the context of digital assets, these transactions occur directly on a blockchain network, where cryptographic protocols ensure the validity and security of the exchange. This method bypasses traditional financial institutions, reducing costs, increasing transaction speed, and enhancing user control over funds. It embodies a fundamental principle of decentralized finance and digital currency systems.