How Blockchain is Transforming the P2P Economy

Blockchain, the new technology that all [fin]tech-heads are seemingly talking about, provides a new way of storing and transferring data through a secure, distributed network of computers. This distributed ledger technology keeps track of all the changes ever made to it, virtually eliminating the possibility of fraud and providing unparalleled transparency. These two factors create inviolable trust between the opposite parties in a transaction and does so without the need for an expensive third party. It is this inherent feature of trust that makes blockchain a radical disruptor of FinTech and P2P applications.

Peer-to-Peer Reinvented

Blockchain technology disrupts many traditional industries by offering a faster, cheaper, more secure, and more effective transactions between peers. What used to require expensive intermediaries or third-parties can be now carried out easily through blockchain thanks to the implementation of smart contracts.

Smart contracts are the idea behind the so-called blockchain 2.0 concept. They represent a covenant between two parties which is written and secured using a programming language. The contracts are automatically executed as soon as the specified triggers are pulled.