Hope everyone is doing well and enjoying their lives. First of all, I want to thank the community and the contest organizers for allowing us to discuss P2P transactions here. P2P transaction is a simple fast and low-cost transaction that we usually use. Further p2p we have explained below hope you will like my entry let's go...

What is P2P?

P2P is a decentralized network model in which everyone has equal authority to complete or initiate their transaction. In the context of trading and finance, P2P refers to a system where both the seller and the buyer interact with each other. It does not require any third party. They are provided with a platform using which they trade with each other. And we benefit from this trade.

How it works?

Listing Offers
Users can post an offer to buy or sell their USDT. Because in it he determines his price amount and payment methods according to which he will accept these things.

Searching Offers
The seller and buyer look through the listings and find an offer that meets their needs.

Initiating Trade
Once the offer is selected, the seller and buyer start trading between themselves. And the P2P platform keeps them in escrow until both transactions are completed.

Payment
The buyer sends an agreed-upon fiat currency or other payment method directly to the seller. This step is usually separate from the platform in which you use bank transfer PayPal etc.

Confirmation and Release
When the seller confirms that he has received the payment. Then the platform transfers the USDT from Escrow to the buyer.

Characteristics Of P2P & Traditional Transaction

Characteristics Of P2P

• It does not create any central transaction authority to complete its transactions. Rather, it has a network of participants who handle the trading and oversee the entire process.
• In this, participants trade directly with each other based on their prices. And it has more nature and flexible trading arrangements.
• P2P uses an escrow system to improve security arrangements and increase mutual trust. Whereby the platform temporarily holds the funds until the two agree to each other.
• The P2P platform accommodates a variety of transaction methods so that users can choose the most convenient option for them.
• Many P2P platforms require us to go through a KYC procedure during the transaction. Because traditional centralized exchanges conduct direct transactions as compared to them.
• Its fees may be lower compared to centralized exchanges. This is because the platform mainly earns from escrow and dispute resolution services.
• The speed of the transaction depends on the payment method. The speed of trading is higher on different types of payment methods.

Characteristics Of Traditional Transaction

• This platform acts as an intermediary that automatically matches buy and sell orders with the order book system.
• Trading on this is done automatically and the platform manages the funds directly.
• Centralized exchanges are generally limited to payment methods such as bank transfers and credit cards managed by the exchanges. It has limited transaction methods.
• In this, users have to go through the KYC procedure. Because exchanges maintain records of all transactions.
• This includes trading fees as well as fees on withdrawals and deposits as well as fees for some additional services.
• Transaction speed is usually faster on it. Because they are handled by the platform's systems.

Advantages & Disadvantage of P2P

Advantages

Flexibility
It has more choice in payment methods and trade terms which we can set according to our own

Accessibility
This is better for customers who have limited access to traditional banks

Control
This gives participants more control over the terms and conditions of their trade on their purchases and sales.

Disadvantage

Risk of scams
Even with the escrow method, we have to face people who cheat us.

Slower Transaction
It depends on customer response and payment processing time.

Complexity
A centralized exchange may require more effort and attention to detail than a straightforward process.

What is TRC-20?

TRC20 is a version of the USDT Tether (USDT) stablecoin. TRC-20 follows the token standard and operates on the Tron blockchain. Tether is a stablecoin pegged to the US dollar. And different versions of it exist on different blockchains. TRC-20 ensures compatibility and interoperability with other tokens and applications by networking Tron. It is designed to take advantage of Tron network features such as high speed and low fees.

Difference Between TRC-20 & ERC-20

Blockchain Platform:

TRC-20: Operates on Tron Blockchain
ERC-20:Operates on Ethereum Blockchain

Speed:

TRC-20:It typically has the fastest transaction times due to the network's highly efficient consensus mechanism.
ERC-20 :It usually has slow transaction times. Because of its existing proof-of-work methodology. Ethereum aims to solve this with proof-of-stake

Fees:

TRC-20:Due to the low price of gas, it has low transaction fees. That is the reason for the Tron Efficient network.
ERC-20:Fees are usually high which can be significant during periods of high activity due to Ethereum's gas fee structure.

Network Congestion:

TRC-20:The TRC-20 USDT network can handle a high number of transactions per second. Due to this, there is not much congestion on the network.
ERC-20:During periods of high usage, we may experience high congestion which results in reduced transaction times and higher fees.

User Experience:

TRC-20:In this, users can benefit from cheap and fast transactions, which is very beneficial for repeat business.
ERC-20:On this, users can experience expensive and slow transactions. However many can take advantage of the available applications.

Security:

TRC-20:It has strong security that relies on Tron Network's security protocols.
ERC-20:It has a proven security track record with a large number of developers and editors working to protect and improve it.

Example Of TRC-20 & ERC-20

Suppose 50$ send to a friend Through TRC-20

Chain: Tron
Speed: Fast in a few seconds
Fee: Low less than 1$
Process:
First, you have to use a wallet that supports TRC-20 USDT. By opening it you have to write your friend's wallet address and write the amount. After that, you have to confirm that in a few seconds, your 50 dollars will be instantly sent to your friend that too at a low fee.

Suppose 50$ send to a friend Through ERC-20

Chain: Ethereum
Speed: Slow take several minutes
Fee: Higher depending on network Congestion
Process:
For this first, you have to open the wallet that supports ERC-20 USDT. Then you have to write your friend's wallet address and amount. After that when you confirm it for the transaction if there is more congestion on it then you will have to fill a higher gas fee which will be time-consuming for you.

What is Escrow?

Escrow plays an important role in P2P transactions by acting as a trusted third party. Its purpose is to hold the USDT while you are making your transaction. It holds until both parties settle their issues and agree to each other.

How it work?

Initiation of Trade
Both the buyer and the seller agree on the terms of the transaction. A buyer starts by specifying the amount of cryptocurrency they want from a seller. For example, let's say I want $50.

Escrow Activation
The P2P platform transfers the cryptocurrencies that are being sold to an escrow account. And ensures that the broker cannot access these funds until the trade is initiated. And this work is temporary, when both agree, the funds are transferred.

Payment Method
The buyer makes his payment in the manner specified by the seller. It can be for example bank transfer or PayPal etc. In addition, it can also agree on an agreed fiat currency.

Confirmation
The Seller confirms that it has received the payment from the Buyer.

Release of Funds
When the money is received, the escrow transfers the payment from its account and the payment remains in the escrow account until both issues are resolved or until both parties agree.

Benefits of Escrow Protection

For Buyer

• This confirms that the buyer can get their cryptocurrency only after payment. And so the seller cannot access the fund until the buyer confirms the payment, thus avoiding most scams.
• This provides us with better security that allows us to trade with any third party or advertiser.
• In this, if the seller fails to deliver his cryptocurrency to the buyer, the buyer can raise the issue. And that issue will be solved by the P2P platform itself. And will ensure that the buyer is not treated unfairly.

For Seller

• This ensures that the buyer cannot release their cryptocurrency until they transfer the payment to the seller.
• This creates an atmosphere of trust and security that encourages more users to trade P2P.
• If a buyer claims that he did not receive any cryptocurrency. Although the seller has given him that currency. The seller may make an issue of this and the issue shall be settled in two pieces. And will ensure that the seller does not lose what he has.

Various payment methods are available on P2P exchanges for USDT transactions, some of the common payment methods are as follows depending on speed, security, and fees.

Bank Transfer

Speed
Its speed varies depending on the bank and country. If you are doing a domestic transfer, it will be transferred within the same hour. If you are making an international transfer, it will take approximately one to three business days to transfer.

Security
Banks are strong in terms of security. Because they have security protocols and fraud detection systems in place. However, there is a risk of chargebacks in some cases as per their bank policy.

Fees
Your fees are generally lower for making domestic transfers. But if you have to transfer international funds, they can be expensive. They also depend on banks and amount transfers.

PayPal

Speed
It is very fast and completes the transaction within a few minutes. But it usually has a delay when you need additional verification.

Security
It has a high level of security as well as seller and buyer protection, but the risk of chargebacks can usually be initiated by the buyer.

Fee
It charges a percentage on each transaction or a fixed fee which can be relatively high. If the transaction involves different currencies, their conversion may vary.

JazzCash

Speed
In terms of speed, JazzCash is very fast which gives quick access to P2P transactions and transfers run instantly.

Security
JeezCash provides us with a special type of security which is associated with pin verification, only when we enter that pin will our funds be transferred.

Fee
JazzCash has low fund transfer fees making it an affordable option to transfer our funds.

I usually use Binance for P2P transactions and I also use it for my STEEM key withdrawals. First, we open Steemit and transfer the Steem from there to Binance and convert these Steem to USDT. And then USDT we sell so depending on that sale I use P2P on Binance.

Similarly, if I need dollars, I do P2P transactions from Binance. That P2P transaction is further explained below step by step.

Step 01:

Signing Into Binance:

First Step The most important step is to open Binance and sign in first. So that we can get access to our account.
To sign in to Binance we have fixed a password and through this password, we have to access our account. Similarly, we have done finger verification with the help of which we open our Binance.

Step 02:

Navigating to P2P Trading:

Our second step is that when we open Binance, below we will see four to five options. Out of these, we have to click on the Trade Wala which option is visible at the bottom in the center. As soon as we click on it, we will see the P2P option in the top right corner.
If you don't find it easy from here, then you have to open the vault on the bottom corner of the right side. As soon as you open the wallet, after that, you have to open the funding option. As soon as you open the funding, you will see the P2P option below.

Step 03:

Selecting and Filtering Buy Orders:

After opening P2P the first thing we have to do is to click on buy because there are two options one is sell option and the other is buy. We have to click on Buy. After clicking on buy we have to select the USDT currency which we want to buy. At the same time, we have to install a filter. The advantage of the filter is that we will find users according to our amount who are selling dollars. And at the same time, we select the payment method.

Step 04:

Choosing and Placing an Order:

When we enable it by applying the filter, then we will have different users who will have different rates. And we will buy the first one because they have a better rate than the others. To buy it, there is an option of buy in front of it on the right side, we have to click on it.
As soon as further detail is opened, there we have to write the amount of dollars we have to buy. As I want to do for Pakistani rupees 1500 so there I will write 1500 and also I am selecting a bank transfer that I will give to the payment bank. By the way, it has two options, one is from the bank and the other is from EasyPaisa. So I will use the bank if it doesn't go well then I will invest in Easypaisa.

Step 05:

Making The Payment:

Our order has been placed now we have to see his payment history and which number he has entered. For that when we opened it, next we had a bank transfer show but the bank transfer also he is giving us a phone number instead of an IBIN number. Because he wanted to take EasyPaisa transfer, we will select easy money and we will send money to him through EasyPaisa.

Step 06:

Transferring Money via EasyPaisa:

From here we copy his number so that we don't make any mistakes in transferring money, we will directly paste this number and send 1500 on it. After copying here I opened my EasyPaisa account from there I transferred Rs 1500 to him. After transferring Rs.1500 I sent him a notification to let him know that I have sent him the payment and to release the USDT. During this time the above time runs according to this time they have to release their USDT. The time is about seven minutes, he has to send the USDT within seven minutes.

Step 07:

Confirming Receipt of USDT:

As soon as he released USDT we got the option to do so. From which we know that we have reached the dollars, now we will see it in the vault and they were lying in the vault as well. Now I looked at my history and there was a notification there as well, thus our procedure of buying this dollar was completed.

Observation

The purpose of trading P2P on Binance was to get our USDT to us foreign. And if our work is quick, it will be like this. My time here was very short and the transaction was very fast and the fee was also negligible.

I encountered difficulties in this task when he also wrote the phone number in the place of the bank transfer. He had banked EasyPaisa only so I canceled it from there and transferred the money to his EasyPaisa number. With the help of this, the money was transferred to him easily and there was no other problem.

I always use Binance on mobile and have a lot of experience with it. And in terms of this experience I have given all the screenshots before you, and I have easily saved my USDT. And the only place I had trouble with it was where it mixed the bank transfer and EasyPaisa account. And besides, he took a little more time, it was seven minutes, but in seven minutes he transferred me for about two to three minutes.

I have explained it very well to the best of my knowledge. Hope all the points have been covered. If there is any gap or omission, you can correct it so that I can also understand it. And thus I conclude my post. Thank you all for stopping by to spend time here. See you in a new post until then, I ask for your permission. Good Bye

Invitation:

@arinaz08, @rumaisha, @eveetim, @bossj23, @josepha

Cc:
@kouba01

_{Dated: 27-07-2024 About Me}