Peer-to-Peer (P2P)
Quick Answer
Peer-to-peer means direct interaction between parties without an intermediary. Blockchain payments flow directly from sender to receiver without a bank in the middle.
Full Definition
Peer-to-peer refers to direct interaction between two parties without an intermediary. Blockchain is inherently P2P — transactions flow directly from sender to receiver without a bank or payment processor in the middle. P2P payments eliminate intermediary fees, reduce settlement times, and enable permissionless global transfers. Crypto payment gateways add merchant tooling (invoicing, webhooks, settlement) on top of this P2P foundation.
Related Terms
Payment Channel
A payment channel allows multiple off-chain transactions between two parties, with only opening and closing settled on-chain — enabling micro-payments at near-zero cost.
Payment Gateway
A payment gateway facilitates the transfer of payment information between customer, merchant, and processor. Crypto payment gateways replace traditional card networks with faster, cheaper blockchain rails.
Private Key
A private key is a cryptographic secret giving full control over a blockchain address. Anyone with the private key can move all funds — losing it means permanent loss of access.
Proof of Stake (PoS)
Proof of Stake is a consensus mechanism where validators stake crypto as collateral, offering faster blocks and lower fees than Proof of Work — critical for payment processing.
Proof of Work (PoW)
Proof of Work is a consensus mechanism where miners solve computational puzzles to validate transactions. Used by Bitcoin, it is secure but slow (10-minute blocks).
Public Key
A public key is the cryptographic counterpart to a private key, used to derive wallet addresses and verify transaction signatures. It can be shared openly.