Why implement a P2P network for trading crypto assets?

  • P2P Bitcoin trading is purer than trading in centralized exchanges
  • Peer-to-peer trading is essential for the Bitcoin ecosystem
  • To claim the peer-to-peer aspect, the creator of Bitcoin chose a proven network structure
  • Paxful and LocalBitcoins are the available exchanges providing the pure form of Bitcoin trading globally

Recently, BitcoinSampo, a Bitcoin analyst, has pointed out through a blog post posted by LocalBitcoins that centralized crypto digital assets exchanges are somewhat similar to traditional trading platforms. According to the report, it is observed that it mainly claims that P2P crypto exchanges like LocalBitcoins’ services are purer to the original Bitcoin ethos. Sampo also noted that even the leading crypto token’s whitepaper shows signs that it is supposed to be operated in such exchanges only. 

P2P is essential to the Bitcoin ecosystem

In the blog, Sampo has notably mentioned that the term P2P is essential for the BTC ecosystem. According to Sampo, Satoshi Nakamoto, the pseudonymous creator of the most famous crypto coin globally, has also mentioned peer-to-peer in the coin’s whitepaper’s title and the first and third sentences of the document. Sampo argued that P2P trading of crypto tokens is the purest form, as it doesn’t require any third parties to complete any type of transaction. Sampo also highlighted that Bitcoiners should significantly note that the coin is not designed in a vacuum, as it was reportedly a part of numerous related developments like hashcash, b-money, and bit gold. 

Why did Nakamoto use a proven network structure?

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To claim the P2P aspect was the last ingredient needed for a genuinely revolutionary cryptocurrency. According to Sampo, noting the aforementioned fact, Nakamoto chose a proven network structure and best qualities of older versions of electronic cash to develop the leading crypto token. However, peer-to-peer trading is one of the oldest professions, which was started as a deal transaction among two parties, and Bitcoin brings such an old trading system back with a pure form.

How to find the purest form of trading Bitcoin?

P2P trading is only possible when the traders are physically present at a location during the trade. Indeed, now we are in a modern generation where the financial world needs global trading platforms implemented with digital technology. Paxful and LocalBitcoin are some examples of providing such pure form of trading services. And such platforms aim to cater to the needs of people globally who want to exchange their government issued fiat with Bitcoins. However, the actual downside of P2P is limited liquidity, which affects the price of the token and a delay in receiving the Bitcoin after the seller releases the token.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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