MEXC has something called P2P trading. However, some people do not know what P2P is in the first place, so I wrote an article including the difference from blockchain. Knowing the meaning of P2P trading may also generate interest in actual trading.
What is P2P trading
P2P is an abbreviation for peer to peer. There is no central institution or equipment, and transactions are carried out between end terminals. Therefore, since trading is not done directly through an exchange, in many ways it is left to the discretion of the traders.
Distribute the amount of data processing
It has the advantage of distributing the amount of data processing and allowing quick transactions. As mentioned above, P2P does not have a centralized authority, so it has the advantage that data processing is not concentrated. Even as more users connect to the network, the load on the central server is not reduced and performance is reduced.
The disadvantage is that it is not a centralized system, so there is a possibility of fraud or data falsification. Fraudulent acts by malicious users are likely to occur. Since there is no monitoring by the organization and some users are abusing it, it is not recommended for beginners.
Transaction amount is up to the user
The transaction amount will be decided through negotiation between users. As a result, the price may be higher or lower than the market price. Especially if you are a beginner, it is easy to watch your feet, so it is better to be careful when trading.
Difference between blockchain and P2P
There is a difference between blockchain and P2P. Blockchain is a “data management technology” that combines various technologies such as P2P. On the other hand, P2P is one of the communication methods that “anyone can directly connect with anyone”. “P2P” is an abbreviation for Peer to Peer, and the word “peer” has the meaning of “equal person”, “equal”, “friend”, etc. As an example of using this communication method, there is a calling application such as “Skype”.
Reasons for using P2P
Why is P2P used in blockchain?
With the client-server method, if the server or network fails for some reason, such as an attack or malfunction, the service may stop. However, in a P2P network, computers with equivalent functions participate as peers and communicate with each other to form a system. Even if the network fails, it is still possible to communicate over the network with other peers for similar reasons.
In the P2P network method, unlike the client-server method, the network is composed of multiple computers playing equal roles as peers. In addition, system construction costs can be reduced. No need for multiple expensive computers.
The P2P network method is used because it is decentralized. In a P2P network, participating computers do not act like servers/clients, and authority is not centralized on a particular server. You can prevent the concentration of power by monopolizing or concealing information collected on a specific server.
P2P trading on MEXC
MEXC allows P2P trading. Select “P2P” from “Buy Crypto”.
Select a transaction currency.
Then select the number of tokens to buy or the amount to spend.
The money will be transferred to the relevant bank account within the specified period.