Peer-to-Peer explained in the simplest way. Here are things you should know about Originex's P2P trading and marketplace.
P2P — An Overview
Peer-to-Peer (P2P) in general refers to sharing of data, information, or assets (virtual currencies) directly between counterparts without any centralized authority or institution. This might be a decentralized interaction between two individuals or among groups. Peer-to-Peer mechanisms are pretty much used in computer networks and trading virtual currencies. In a Peer-to-Peer network, every member is an equivalent owner and contributor to the network as the network is owned by no one single governing entity. P2P networks are used for the seamless and fast sharing of almost any kind of assets or information.
Originex’s P2P Trading
Originex’s P2P trading engine is created with the goal of enabling the anonymous transfer of assets without being processed by any traditional financial institution like banks. Originex P2P trading engine uses encryption and blockchain technology to enable traders to safely conduct transactions without depending on any intermediaries or third-party payment processors. The buyers and sellers are automatically connected through an exchange software based on preferences around price, trade amount, and the types of currency accepted, which significantly reduces the operating costs associated with trading. Since cryptocurrency trade is based on the fundamental mechanics of peer-to-peer transactions, Originex’s P2P trade is a natural fit for digital currency lending.
Originex’s P2P trading engine provides a notable security advantage. The transactions are recorded on the blocks of every peer in the network, making it computationally impractical to erase the transaction data off the chain. Thus there is no possible way to overwrite or falsify ledgers in Originex’s P2P trading.
Conventional P2P and the risk of fraud
A P2P trading platform is moreover like a Facebook marketplace but with an additional layer of protection for the traders. Let us say, you meet someone through social media and he/she is interested in buying Ether from you. Luckily, you also have some ETH that needs to be sold. Since social media is not a P2P platform, there is no way to establish trust. You are risking your asset, as the buyer might receive ETH but would not send the payment. There is also a high chance that the buyer sends an amount lesser than what you negotiated. So, without a proper P2P trading engine, Fraud will be the biggest risk in Peer-to-Peer trading.
Originex — The most trustworthy P2P marketplace
Originex has established a public trust score system to evaluate traders. This feedback or rating system makes Originex, one of the trustworthy P2P marketplaces globally. Originex P2P reduces the risk of fraud by protecting both buyers and sellers. Originex uses escrow to safeguard transactions, i.e. the assets and funds are not released until both parties have confirmed the transactions. This creates a win-win situation for both the parties involved in trading. For instance, if you sell ETH for fiat currency of your choice, Originex will ask you to send ETH in upfront for escrow. Meanwhile, a buyer would have sent fiat to Originex’s escrow. When both parties have confirmed the transactions, Originex will release the assets to the respective parties. Also, if either of the parties is unhappy with the trade, a complaint can be raised that takes the issue to Originex support for the resolution.