Excerpt
I explain peer-to-peer (P2P) transactions and how they work in Bitcoin. I describe how Bitcoin meetups enable this direct exchange and which online platforms you can use. Watch now and learn how you can benefit from P2P transactions!
Transcript
So Satoshi Nakamoto, the founder of Bitcoin, wrote in the white paper which was published in 2008, the title of the Bitcoin Whitepaper was “A Peer-to-Peer Electronic Cash System.” What does that mean? So Bitcoin is a network, a software where each computer – and in Bitcoin, it’s called a node – is relaying payment information. There is no hierarchy; every node has the same rights as any other node. Bitcoin is a permissionless network system, meaning you can download the Bitcoin software onto your computer and run it without the need to ask anyone. And it’s basically a peer-to-peer computer network that is distributed all over the world and very decentralized, and that makes Bitcoin so special. And peer-to-peer in a social context, like in the real world, means that you are exchanging bitcoin to your local currency from a person. You know, you go to a person, you meet with a person in real life, and you exchange bitcoin. That means peer-to-peer. Also, peer-to-peer exchanges are usually without the need for customer identification because you’re only exchanging it with another private person, and there’s no business involved and no intermediary. This is actually the best way to receive bitcoin because then no one can trace the money, where you spend it, what you’re doing with it, and it gives you a lot more privacy. Also, most Bitcoin exchanges where you can buy bitcoin are regulated exchanges like Coinbase, Kraken, Binance, and so on, but there are also peer-to-peer exchanges where you can exchange privately with a person and you can find them on platforms called HodlHodl, for instance, or RoboSats. This is what peer-to-peer in the context of a Bitcoin Meetup means.
