Cryptocurrency Q&A
How does a P2P exchange work?
How does a P2P exchange work?
DigitalTreasureHunter
Sat Jul 13 2024
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7 answers
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Could you elaborate on the workings of a Peer-to-Peer (P2P) cryptocurrency exchange? I'm curious to understand the fundamental principles behind such a platform. Specifically, how does it facilitate trading directly between individuals without a central authority? Does it utilize any unique mechanisms or technologies to ensure security and trust between buyers and sellers? Also, what are the advantages of P2P exchanges compared to traditional, centralized exchanges? I'd appreciate a concise yet thorough explanation that highlights the key aspects of how a P2P exchange operates.
7 answers
CryptoTitanGuard
Mon Jul 15 2024
In a P2P exchange, the buyer initiates the payment process, but the funds are held in escrow until the seller's bitcoins are safely transferred.
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Raffaele
Mon Jul 15 2024
Cryptocurrency transactions offer users a unique level of control through various mechanisms.
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KabukiPassion
Mon Jul 15 2024
One such method is child-pays-for-parent (CPFP), which allows a child transaction to increase the fee of its parent transaction, thereby ensuring its prioritization in the blockchain.
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Riccardo
Mon Jul 15 2024
Additionally, replace-by-fee (RBF) fee-bumping provides another layer of flexibility, enabling the sender to replace an unconfirmed transaction with a new one that has a higher fee.
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BlockchainBrawler
Mon Jul 15 2024
Peer-to-peer (P2P) exchanges provide an alternative platform for cryptocurrency transactions.
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