P2P is an abbreviation for Peer to Peer.
It is a network in which individual terminals (Peer) trust each other without a central server (central organization). A antonym for this is the server-client method.
Cryptocurrencies, such as Bitcoin, use the P2P method to share transaction data and operate without a central administrator.
Without a central administrator, the integrity of the data cannot be guaranteed, but by implementing a “blockchain” that approves correct transactions and records and connects a series of transactions from the past, the integrity and reliability of the data is guaranteed.
Differences between Credit Cards and Bitcoin
Credit cards use a server-client system, where the company issuing the credit card hosts the server and users send requests to the server through their terminals to perform bookkeeping tasks like payment.
Bitcoin, on the other hand, does not have a specific server that does the bookkeeping work. The network of miners that authenticate the transactions communicate with each other via P2P.
In addition, there is no temporary suspension of use due to server maintainers, and transactions can be made 24 hours a day, 7 days a week.
International money transfers require high fees and days to complete, but with bitcoin, the fees are close to zero and the money can be transferred in about 10 minutes or so.