Introduction to P2P trading: what is peer-to-peer trading and how does a local Bitcoin exchange work?

Users who prefer a decentralized approach to buying and selling cryptocurrency often lean toward
peer-to-peer trading .
Peer-to-peer trading, or P2P as it is commonly known, allows buyers and sellers to interact directly, without agents or intermediaries. We will talk about how P2P exchanges work, as well as the advantages and disadvantages of P2P trading .

What is peer-to-peer trading?

P2P trading is the direct purchase and sale of cryptocurrency by users without the participation of a third party or intermediary. When buying or selling cryptocurrency on a traditional exchange, you are not transacting directly with the counterparty. Instead, you use charts and other market tools to determine the optimal time to buy, sell, or hold cryptocurrencies. The exchange arranges the transaction on your behalf, and the market price determines the final price at the time of the transaction.

P2P trading allows you to have more control over the choice of buyer or seller of your cryptocurrency, have more influence over pricing and settlement times, and generally have more control over the transaction. At the same time, P2P transactions also carry certain risks due to the absence of a third party acting as an intermediary in the transaction. From this point of view, the presence of an exchange like Binance P2P becomes a must for cautious users.

How does a P2P exchange work?

Some people compare P2P exchanges to marketplaces like Craigslist or Facebook Marketplace. Indeed, they allow cryptocurrency buyers and sellers to interact with each other. Buyers and sellers can view listings or post their own. P2P exchanges also provide a degree of protection for everyone involved in the transaction through a feedback or rating system. Imagine: you see that someone is interested in buying Bitcoin on Twitter, and you have some Bitcoin to sell. But Twitter is not a P2P platform, and it is difficult to talk about trust here. What happens if the buyer receives Bitcoin but does not send payment? What happens if the buyer pays less than required? The risk of fraud when making P2P transactions outside of the exchange is very high.

Binance P2P can protect both the buyer and seller, ensure transaction security and reduce the risk of fraud. In addition to the public rating system, Binance P2P uses an escrow service to protect cryptocurrency until both parties confirm the transaction. For example, you buy Bitcoin with fiat. The seller sends Bitcoin to the Binance escrow service. Once you send fiat funds and the Merchant confirms receipt of fiat funds, Binance will credit you with Bitcoin, ensuring the transaction is safe and secure.

File sharing programs

The main programs for ensuring fast and high-quality file exchange are the following:

• uTorrent is the easiest and fastest program, 150 million users use the service to transfer data every minute;
• BitTorrent is a special extension and the progenitor of the creation of a peer-to-peer system. It has been known for a long time, but still competes well with other client services;
• BitComet is a Chinese program with security protocols, mostly aimed at the Asian market by adapting to the alphabet of China, Japan and Korea;
• eMule is a structured client system that operates under the GNU GPLv2 license and is distinguished by its security and good development;
• Vuze is considered the only torrent client that has an I2P system that provides complete anonymity for users.

Advantages of a P2P exchange

Global marketplace

local P2P bitcoin exchangeP2P Binance

One of the benefits is access to a global market of cryptocurrency buyers and sellers. available in more than 180 countries. This allows you to trade cryptocurrency with people around the world in seconds.

Various payment methods

When trading on traditional exchanges, you have fewer payment options available compared to P2P exchanges like Binance. Binance offers over 150 payment methods, including cash in person. This can be convenient for those who prefer personal transactions or for those who do not have access to a bank account.

3. Zero trading commissions

Traditional cryptocurrency exchanges charge a fixed commission or percentage per trade. Binance P2P, on the other hand, allows traders to connect to the service and conduct transactions with zero commissions. Not all P2P exchanges offer this service, so be sure to check the terms and conditions when choosing a peer-to-peer exchange.

Transaction security thanks to escrow service

As mentioned above, Binance operates an escrow service to protect buyers and sellers. Securing a transaction with an escrow service allows Binance to lock the funds and release them only after both parties have met the terms of the transaction. Binance P2P transactions must be completed within a certain time limit: if either party fails to fulfill the terms of the transaction, the cryptocurrency or fiat funds will be returned to your wallet.

What is the main difference

There are several types of capture devices capable of transmitting images via the Internet: household web, IP and p2p cameras. Additionally, some analog and digital options are equipped with this capability, with video data processing and conversion in the recorder. What is the main difference between p2p devices? Everything is very simple - they have simple setup, there are no special requirements for the IP address and, of course, there is access from any device capable of accessing the Internet, to the current broadcast image and the interface of the camera taking pictures.

A nice bonus is that the record is not tied to a specific recorder, which could be damaged or stolen. All information received from the p2p camera is stored in the “clouds” of the Internet. This feature also eliminates problems with physical space for video recording - it will be equal to the amount of purchased space on network servers. And the function of controlling the camera via the Internet itself is often pleasing - for example, you can turn on zoom, activate sound, adjust the brightness, or even control the rotation of the device, pointing it in the direction of interest to the user.

In fact, currently 90% of network video capture devices on the market are equipped with support for the P2P protocol, allowing them to connect to a cloud service. In this regard, only very simple models or branded devices designed to work with branded recorders produced by the same factories as the cameras themselves are limited.

For those options when the built-in software of the video capturing device does not allow you to connect it to the cloud, third-party programs are used that perform the same functions. They exist in the form of firmware for the device itself or additional software installed on a separate computer.

In general, the main difference indicated by the “p2p” identifier in the name of a video surveillance camera is that it allows you to identify a device on the network not only using DDNS, UnPnP, or a pure IP address, but also by an internal identifier. Actually, through which the device is connected to the Internet server. In addition, the transmission of video data itself takes place within the framework of a protocol that involves a connection through a chain of computers, which increases the likelihood of it reaching the receiving device. That is, the end user only needs to have contact with the global network and know the ID of the point from which he wants to receive the image. Automation will do the rest.

We also recommend reading how to find out IP cameras.

Disadvantages of P2P exchange

Slower trading speed

Although P2P transactions, once confirmed by both parties, are usually completed almost instantly, one of the parties may delay the transaction for various reasons. In traditional trading, you don't have to wait for confirmation from the buyer or seller to complete the transaction. In the case of P2P, the buyer or seller may change their mind during the process and abandon the transaction.

Low liquidity

P2P exchanges are still a relatively new tool; liquidity here is lower than on centralized exchanges. For this reason, large traders who need to make large trades may prefer to use over-the-counter (OTC) trading or buying/selling on a standard exchange.

Advantages and disadvantages

As with most “smart” equipment, network cameras with p2p capabilities have their limitations and advantages.

Advantages of IP P2P cameras

• easy setup;
• convenient remote control;
• cloud video recording;
• no restrictions on volume;
• no third-party recorder or computer is needed to record the image;

Flaws

• a good outgoing Internet channel is required;
• Network access is required for the client device and the camera itself;
• certain (not high) constant expenses for the cloud service itself, if the user’s requests exceed the standard capabilities of the video capture device supplied free of charge;
• if the p2p camera itself is not equipped with an Internet connection system, you will need an intermediary who will provide it - specifically a separate router;
• transmission of information via a p2p channel implies that the video passes through a chain of other computers, whose users, in theory, can intercept the signal.

Proof by regrouping [edit | edit code]

Following Sato Moshun [4] and Leonardo da Vinci [5], we can use inscribed regular polygons in a different way. Suppose we have inscribed a hexagon. Let's cut the hexagon into six triangles, making sections through the center. Two opposite triangles contain common diameters. Now move the triangles so that the radial sides become adjacent. Now the pair of triangles forms a parallelogram in which the sides of the hexagon form two opposite sides of length s

.
The two radial sides become lateral sides, and the height of the parallelogram is h
(as in Archimedes' proof).
In fact, we can collect all the triangles into one large parallelogram by arranging the resulting parallelograms (from two triangles) in a row. The same will be true if we increase the number of sides. For a polygon with 2n sides
, the parallelogram will have base
ns
and height
h
.
As the number of sides increases, the length of the base of the parallelogram increases, tending to half the circle, and the height tends to the radius. In the limit, the parallelogram becomes a rectangle with width π r
and height
r
.

Best models

Of course, it is difficult to determine specifically the most suitable device in each case. The list below represents P2P IP cameras according to their consumer popularity, according to reviews on the Internet.

What payment systems can you use to exchange cryptocurrency now?

Today you can absolutely officially sell and buy cryptocurrency for rubles using:

Electronic payment systems

• QIWI
• Yandex money
• WebMoney
• VK Pay
• PayPal
• Skrill
• W1

Money transfers

• Western Union
• Unistream
• MoneyGram
• Hummingbird
• TransferWise

Banking

• C2C Visa
• C2C MasterCard
• C2C WORLD
• SWIFT
• SEPA
• Alfa Bank
• Tinkoff
• Sberbank (RUB, UAH, KZT)
• VTB
• Rosbank
• Corn
• Post Bank
• Russian standard
• Rocket
• Raiffeisen
• Unicredit
• RNKB
• Binbank
• Opening
• Gazprom
• BKS
• UralSib
• Sovcombank
• AK Bars
• gold Crown

Other coins, tokens

• Your own cryptocurrencies

Settings

Setting device parameters is quite simple. The actual setup of the camera in a particular case for connecting to the Internet is described in detail in its documentation or on the manufacturer’s website. But let’s look at the connection with the client part a little more fully. In essence, for a computer it is enough to install the supplied software and manually specify the ID cameras in its settings. That's it, you can work. In the case of an Android or iOS device, it’s even simpler. It is enough to take a photo of the QR code located there from the installed software (which one is required in a particular case is described in the documentation or on the packaging). The device will configure everything else on its own.

Archimedes' proof [edit | edit code]

Following Archimedes, compare the area of ​​a circle with the area of ​​a right triangle, the base of which is equal to the circumference and the height is equal to the radius. If the area of ​​a circle is not equal to the area of ​​a triangle, it must be smaller or larger. Let's exclude both options, which leaves only one possibility - the areas are equal. To prove this we will use regular polygons.

No more [edit | edit code]

Suppose that the area of ​​the circle C

greater than the area of ​​the triangle
T
= 1 ⁄2
cr
.
Let E
stand for excess area.
Let us inscribe [en] a square in a circle so that all its four corners lie on the circle. There are four segments between the square and the circle. If their total area G
4 is greater than
E

which
turns the inscribed square into an octagon and forms eight segments with a smaller total gap,
G
8. We continue dividing until the total gap
Gn
becomes less than
E. Now the area of ​​the inscribed polygon Pn
=
C
−
Gn
must be greater than the area of ​​the triangle.

G_\P_&<>=C-G_\&<>>CE\P_&<>>Tend>>»> E = C − T > G n P n = C − G n > C − EP n > T E&<> =CT\&<>>G_\P_&<>=C-G_\&<>>CE\P_&<>>Tend>> G_\P_&<>=C-G_\&<>>CE\P_&<>> Tend>»/>

But this leads to a contradiction. To prove this, we draw the height from the center of the circle to the middle of the side of the polygon, its length is h

less than the radius of the circle.
Let each side of the polygon have length s
, the sum of all sides will be
ns
, and this value is less than the circumference.
The area of ​​a polygon consists of n
equal triangles of height
h
and base
s
, giving 1 ⁄2
nhs
.
But h
1 ⁄2
cr
, we get a contradiction.

No less [edit | edit code]

Let's assume that the area of ​​the circle is less than the area of ​​the triangle. Let D

means the difference in area.
We describe the square around the circle so that the midpoints of the sides lie on it. If the total gap between the square and the circle G
4 is greater than
D

turning
the square into an octagon and continue such cuttings until the area of ​​the gap becomes less than
D. The area of ​​the polygon Pn

must be less than
T.

G_\P_&<>=C+G_\&<> D = T − C > G n P n = C + G n C + DP n T D&<>=TC\&<>>G_\P_&<>=C +G_\&<> G_\P_&<>=C+G_\&<>

This also leads to a contradiction. Each perpendicular drawn from the center of the circle to the middle of the side is a radius, i.e. has length r

.
And since the sum of the sides is greater than the circumference, a polygon of
n identical
triangles will give an area greater than
T. Again we get a contradiction.

Thus, the area of ​​the circle is exactly equal to the area of ​​the triangle.