Bitcoin
A decentralized digital currency that operates without a central bank or single administrator.
Peer-to-Peer
Definition
Bitcoin is often called “peer-to-peer electronic cash” because it removes the middle person. Normally, banks stand between sender and receiver to verify and settle transactions. In a peer-to-peer system, that verification happens across the network itself, allowing direct payment without trusting a single institution.
Example
In a peer-to-peer payment, Alice sends funds directly to Bob without a bank in the middle.