Definition
A network architecture where participants interact directly with each other without a central authority or intermediary. Bitcoin was described as a 'peer-to-peer electronic cash system' in Satoshi Nakamoto's original whitepaper.
Why It Matters
Peer-to-peer is the foundational concept that allows Bitcoin to work without banks. Direct value transfer between individuals anywhere in the world is one of crypto's most powerful properties.
Example
You can send Bitcoin directly to someone in Japan from Canada in minutes without a bank, wire service, or payment processor involved.
Related Terms
Bitcoin
Decentralization
Blockchain
Node