Peer-to-peer (P2P) refers to a type of network interaction where two or more computer systems communicate with each other to share workload or resources. In this interaction, every computer involved managed all aspects of the communication including storing data and processing all tasks. Thus, this kind of network interaction does not require a central server to arrange and manage the resources needed.
A P2P interaction only requires an internet connection and a copy of the software or protocol for each computer.
Cryptocurrencies and blockchain technology adopts the P2P system as their foundation. Cryptocurrencies pride themselves as a true P2P financial system that does not require any third party to manage or process any transactions within the network.
On-Chain transaction is cryptocurrency transactions that written in the blockchain
Decentralized financial applications built on top of blockchain networks