The world is still getting used to peer-to-peer technology. These projects are gaining a lot of steam, so top service providers are embracing the model. There are still some problems, like political opposition, that make it hard for people to get along.
Peer-to-peer technology is becoming more popular.
Major technology and service providers should be praised for being willing to give up some control by embracing peer-to-peer solutions. For example, a network like PayPal or Stripe doesn’t have to let users talk to each other directly, even if everything happens through their ecosystem. But they choose these solutions because they make their services easier to use and help them get more users.
The Cash App and Venmo both work in a similar way. Even though these solutions are very different, the fact that you can pay anyone by their nickname or split payments with others without cash is still appealing. It changes how people think about payments and money transactions and makes life easier for millions of people.
No matter how popular these platforms have become, one problem remains. Most places in the world don’t have solutions like the Cash App and Venmo. People can use PayPal and Stripe in many places, but those companies have put in a lot of work to make sure they follow the rules and have the right licenses. When added to other political barriers, this unnecessary red tape can make it very hard for peer-to-peer solutions to gain critical market traction.
Using old technology to get rid of these limits will be hard in a number of ways. The use of decentralized peer-to-peer technology, on the other hand, opens up new possibilities. For example, people laughed at the idea of crypto banking years ago, but it’s still gaining ground in 2022 and beyond. People want peer-to-peer connections to be more widespread, and they will do whatever it takes to make that happen.
The next big thing is crypto-based P2P.
PIP is a great example of what crypto banking and peer-to-peer technology are all about. The PIP team takes social platforms that already connect billions of people around the world and makes them work with scalable crypto protocols. For example, people who use Twitter and Facebook can use Solana to access crypto banking solutions that let them make transactions without having to pay high fees or get permission.
The team could have built a whole new infrastructure, but it would have been hard to get going. The best way to build for Web3 is to use technology stacks and platforms that are already out there. PIP is a way to connect Web 2.0 platforms like social networks to the blockchain. The main goal is still to open up the peer-to-peer economy. This will be done through three important steps:
- Buying and selling currencies, assets, or anything else with digital value on social platforms that are already in place.
- Putting a person’s social identity on the blockchain
- Giving everyone the chance to make money from their online creations, no matter what kind they are or what social platform they use.
By joining the peer-to-peer economy, people will be able to break out of their local economy and its overall limits. No one should make less money than anyone else because of things that aren’t fair. Global micropayments will make it easier for millions of people to live better lives. More importantly, it will make the global economic standard more accessible and help more people get access to money.
What will the banks do?
The big question is how banks will deal with this situation, which is always changing. They will try to join in as peer-to-peer technology becomes more popular. Banks and other financial institutions often have long and complicated ways to sign up, which keeps some people from using their products and services. Blockchain-based P2P solutions get around these rules and make the whole process easier.
It is in the best interest of banks to work with these new ideas. Consumers and businesses should be able to easily find solutions that will help them grow. Peer-to-peer solutions allow banks to reach a wider audience, even if it means giving up some control and profit. Time will tell if they are willing to live together or if they will keep trying to block these new ideas for as long as possible.