What should P2P on centralized exchanges should be called?

[Jawhead999]

P2P isn't must to be no KYC or decentralized, as long as the trade is only involve with both of parties, it's still P2P.

There's nothing wrong if the centralized exchange claimed to have P2P service, what make people need to pay attention is they need to read the terms and conditions of the P2P service.

What those centralized exchange wrong is when they say their exchange is a safe place to hold your coins.

[Ndabagi01]

I do not like to see people using P2P for centralized exchanges. The centralized exchanges has been confusing people about it. P2P means the exchange should be without any intermediary but the exchanges are the intermediary which make them not to have P2P but another thing entirely.

Yes, P2P simply means peer to peer, and their use of P2P services in their exchanges goes against the definition of P2P. Someone who is well-versed in the crypto industry and often uses exchanges will not be perplexed by what it implies and will understand what the exchanges are referring to.

However, a newcomer using a centralised exchange for the first time will only notice that if they are really smart and know what they have learnt about it previously, as well as the meaning and how it works better. It would be preferable if the P2P working principle followed what it means, but an escrow mechanism (the exchange) makes it more trustworthy than simply exchanging through a random individual you don't know.

What about CEP2P? It means centralized exchange P2P.

Why not just scrap the P2P name, so that we all know it’s not a P2P service anymore.

If anyone advertises P2P when it's not, it should be illegal. I have no idea what type of P2P you are talking about but most of the centralized exchanges I know does a P2P keeping itself as an escrow system. Having an escrow in P2P don't make than non-P2P.

Exchanges advertises P2P, which does not portray what P2P is, yet it cannot be considered unlawful because it is the means that brought the two parties together to trade funds.  It's even safer and more transparent to use a system like that when trading funds online.

[Forever101]

I think the concept of p2p in each case differs as Decentralized exchange works on automated market maker and a available crypto that will be swapped at the instant while cex p2p requires human intervention as it involves crypto to fiat exchange and vise versa. As it maybe, in as much  as fiat remains valuable, cex p2p plays crucial role in enhancing fiat to crypto conversion. The best thing is for you to know the difference and how they both work.

[alastantiger]

This is just semantics and shouldn't be a problem. They are still Peer-to-peer maybe just another type. Assume that I live off-grid and really need to change some of my bitcoins to a local currency to enable buy something, if I don't come across one person in my environment who can do it for me as the OP explained, CEN P2P will help make the connection for fast withdrawals and save my life. This is why I said CEN P2P is just nother type of P2P.

[Doan9269]

• exchanging bitcoin directly with another person like on this forum

You may habe the challenge of teust with wvom you may be dealing with on the exchange rate you may try to buy or sell your bitcoin,most people prefer exchanges because they know that they are reliable in that aspect, p2p with centralized exchanges is still p2p but the exchange used is centralized.

• the use of decentralized exchanges

Best use case but we have to be sure the exchange we are using are truly decentralized.

What about CEP2P? It means centralized exchange P2P.

There's nothing bad in that but we should still be aware that it makes no difference in the se se that they are still identified as p2p despite being under centralized which would obviously mean that we call the other one DEp2p

[yazher]

The centralized exchange plays a crucial role as an escrow service, securely holding both cryptocurrency and fiat currency from both parties to facilitate trustworthy transactions. In contrast, decentralized exchanges face challenges, particularly in peer-to-peer transactions involving fiat from banks. Nevertheless, the centralized exchange fulfills its purpose effectively, and I am satisfied with its performance.

Thanks to these new features which we don't find in any of the exchanges before, we escaped the local exchanges' bullying which they asked for a high amount of payment when they convert your crypto into fiat which doesn't really make sense at all. But with this new feature from most of the popular exchanges, we can trade it easily to other people and they pay a reasonable price for your bitcoins which is closely the same as the current market price. As for me, I don't have to worry about what they gonna call it because all I can say is the feature is super convenient and good for newbies to try.

[Woodie]

I have experienced today's p2p exchange services on a platform like Binance, and I don't think it's any different from popular platforms like localbitcoins as both have some centralized mediation to them, if anything the centralized involved expedite the trade to avoid open trades from running without the other party playing their part to complete the exchange.

Besides, there is very little involvement that comes to play on these centralized exchanges as everything is pretty much between the two peers unless some illegal transactions are about to happen.

I think the concept of p2p in each case differs as Decentralized exchange works on automated market maker and a available crypto that will be swapped at the instant while cex p2p requires human intervention as it involves crypto to fiat exchange and vise versa. As it maybe, in as much  as fiat remains valuable, cex p2p plays crucial role in enhancing fiat to crypto conversion. The best thing is for you to know the difference and how they both work.

From how this has been explained,  this actually also protects users from being sold fake coins as the centralized exchange will only credit your account if the real coin is it used, it's not everything about a CEX that is bad

[Gallar]

~Snip

Your opinion is not wrong. Because p2p exchanges exist in trading crypto assets, basically trading directly between the seller and the buyer, without having to use third-party media. But now, crypto exchanges such as for example Binance, already provide p2p features in it, and maybe the question is, can this be called a p2p exchange? In my personal opinion, this can still be said to be a p2p exchange, because even though the p2p is done on an exchange like Binance, still, buying and selling transactions are only carried out by both parties (seller and buyer). So in my personal opinion, the p2p features that exist on centralized exchanges can still be said to be p2p. It's just that the room for conducting transactions is provided on an exchange.

Indeed, it is a bit disturbing the authenticity of a real p2p exchange, as it must be decentralized and there are no third parties. But for me, if it's not detrimental to myself personally. I will still enjoy it and will not bother with it. Because for me personally, to do p2p exchanges without using crypto exchange media like binance, for now it's still a bit difficult sometimes. Because right now, I still don't have many friends, who are ready to buy crypto assets (p2p). So when I have a need, I still rely on p2p features on crypto exchanges to sell my assets.

[Victorik]

I thought even with P2P, there is usually an escrow who used to hold the fund until the buyers sees the token and then credit the seller.
I think in the case of the centralized exchange, they play the role of an escrow and I don't think it will be wrong if it's still referred to as P2P

[CryptopreneurBrainboss]

If we want to call centralized exchange P2P, what should it be called? We need a name on this forum to be calling them. The centralized exchanges have stolen what P2P is. Even many people on this forum are calling them P2P.

What about CEP2P? It means centralized exchange P2P.

Centralized exchange are making people ignore the importance of decentralization in the industry, they have been doing this for a very long time and all in attempt to take away all the decentralization in the industry and it's just getting annoying. They aren't just taking over P2P but also taking over decentralized exchange. For exchange Binance dex is just a joke but we have people believing that they're making use of a decentralized exchange when they use Binance Dex not knowing they're using a disguise. We don't have to change the name of what a P2P is but we have to use every opportunity we have to enlightened people on what truly a P2P is and why it's important to be used on a decentralized exchange.

What's crazier is that the P2P on centralized exchange are taking the decentralized P2P out of business because they're not getting enough volume due to people preferring the centralized P2P as they're more easier to use and more secured (to them) since they don't have to deal with scammers on a high volume as everything is moderated but this is the making the advancement of decentralized P2P to be slow. Immediately a centralized body is Involved, P2P can't be in the name anymore if we wanted to renamed it because there's no peer 2 peer transaction going on the exchange. 

[Coyster]

I thought even with P2P, there is usually an escrow who used to hold the fund until the buyers sees the token and then credit the seller.
I think in the case of the centralized exchange, they play the role of an escrow and I don't think it will be wrong if it's still referred to as P2P

If any third party holds the funds, then it is not peer to peer. In a p2p transaction there is no extra person/entity that is involved in the trade, if it is a physical trade, you'll exchange your Bitcoin directly with the other peer, in exchange for whatever the both of you agreed. Having said that, if it is an online trade, the network has a certain feature that protects p2p traders from scam, without needing any escrow or third party, and that feature is a multisignature transaction, this is what decentralized exchanges use, thus the buyer and the seller will both hodl the funds until the seller confirms the payment.

[AmoreJaz]

I thought even with P2P, there is usually an escrow who used to hold the fund until the buyers sees the token and then credit the seller.
I think in the case of the centralized exchange, they play the role of an escrow and I don't think it will be wrong if it's still referred to as P2P

If any third party holds the funds, then it is not peer to peer. In a p2p transaction there is no extra person/entity that is involved in the trade, if it is a physical trade, you'll exchange your Bitcoin directly with the other peer, in exchange for whatever the both of you agreed. Having said that, if it is an online trade, the network has a certain feature that protects p2p traders from scam, without needing any escrow or third party, and that feature is a multisignature transaction, this is what decentralized exchanges use, thus the buyer and the seller will both hodl the funds until the seller confirms the payment.

i guess the definition of p2p exchange already evolved into something what we have today. this is because a lot of scammers are on the loose without the 3rd party escrow. so just like binance, a lot of traders have confidence to trade on this platform because they have assurance that they won't get rekt. i, for one, is more confident on transacting my p2p trades with binance if i want to convert my crypto to fiat. whereas, for other noncentralised platforms, you have your worry that the other party may not release your funds.

[Darker45]

I can't think of any name to replace centralized P2P. But I share your interest in having it changed. Centralized and P2P can't go together. As a matter of fact, I sense the urgency for this. I've read and heard a number of times how people are recommending Binance, for example, when somebody asks for a good P2P platform. It has sort of become common that when inquired where one usually does peer-to-peer trades, many would cluelessly respond with a centralized platform. I think this should somehow be rectified. A new name might indeed help.

[Learn Bitcoin]

Weren't they called centralized P2P exchanges to start with already? Technically they're still somewhat P2P anyway, it's just that the centralized exchanges acts as the escrow for the transaction.

Agreed, based on sources of the fund, the transaction is still P2P. Both fund came only from the parties involved, so it still peer-to-peer, not like exchange when the fund is pooled into market before someone bought them.

It's still from Exchange wallet to Exchange wallet. It's somewhat P2P but in a centralized exchange. The main concept of P2P does not have any 3rd party involved. If there are any 3rd parties involved, it's not a real P2P. The problem is that most new people think centralized exchanges P2P is the real and only P2P. Most of the time, new people know about Bitcoin when they search how to make money online and find some video or articles about trading Bitcoin which refer them to centralized exchanges.

The first time they see the P2P word is on exchanges. Only a few percent of people know about existing of this forum, and they barely know about Bitcoin Whitepaper. People start using Bitcoin without understanding what it is and what it is good for.

[Coyster]

i guess the definition of p2p exchange already evolved into something what we have today. this is because a lot of scammers are on the loose without the 3rd party escrow. so just like binance, a lot of traders have confidence to trade on this platform because they have assurance that they won't get rekt.

Don't get me wrong, if you feel confident trading in Binance, then by all means do it, the thing is, it is not a peer to peer trade. A p2p trade doesn't involve a third party escrow, to ensure you don't lose your funds to scammers it is preferable if you trade with parties that you trust, if you don't have any, then use a p2p exchange like bisq and you cannot be scammed because buyer and seller control the funds that will be locked in a multisignature transaction until the seller receives the payment.

[Victorik]

I thought even with P2P, there is usually an escrow who used to hold the fund until the buyers sees the token and then credit the seller.
I think in the case of the centralized exchange, they play the role of an escrow and I don't think it will be wrong if it's still referred to as P2P

If any third party holds the funds, then it is not peer to peer. In a p2p transaction there is no extra person/entity that is involved in the trade, if it is a physical trade, you'll exchange your Bitcoin directly with the other peer, in exchange for whatever the both of you agreed. Having said that, if it is an online trade, the network has a certain feature that protects p2p traders from scam, without needing any escrow or third party, and that feature is a multisignature transaction, this is what decentralized exchanges use, thus the buyer and the seller will both hodl the funds until the seller confirms the payment.

Thanks for the correction, I appreciate. I have had a wrong perception about P2P and I didn't even know. Thanks for the enlightenment, it meant a lot.

[Victorik]

I thought even with P2P, there is usually an escrow who used to hold the fund until the buyers sees the token and then credit the seller.
I think in the case of the centralized exchange, they play the role of an escrow and I don't think it will be wrong if it's still referred to as P2P

If any third party holds the funds, then it is not peer to peer. In a p2p transaction there is no extra person/entity that is involved in the trade, if it is a physical trade, you'll exchange your Bitcoin directly with the other peer, in exchange for whatever the both of you agreed. Having said that, if it is an online trade, the network has a certain feature that protects p2p traders from scam, without needing any escrow or third party, and that feature is a multisignature transaction, this is what decentralized exchanges use, thus the buyer and the seller will both hodl the funds until the seller confirms the payment.

i guess the definition of p2p exchange already evolved into something what we have today. this is because a lot of scammers are on the loose without the 3rd party escrow. so just like binance, a lot of traders have confidence to trade on this platform because they have assurance that they won't get rekt. i, for one, is more confident on transacting my p2p trades with binance if i want to convert my crypto to fiat. whereas, for other noncentralised platforms, you have your worry that the other party may not release your funds.

I think the point the OP is trying make is that maybe they should try to use another name for it on centralized exchange, that it shouldn't be called P2P, because it doesn't in any way represent it when you consider the definition of P2P.