What is Peer-to-Peer (P2P) Lending?

Peer-to-peer (P2P) lending is a process of lending money (or crypto, and other assets) to an individual or business enterprise (usually without a centralized intermediary) through a decentralized online service provider that matches lenders with borrowers. Peer-to-peer lending service providers typically offer their services in a cheaper and more transparent way with less operational overhead, when compared to a traditional financial institution. This generally results in lenders and borrowers getting better rates and better service overall. Recently, P2P lending has become more commonplace in the blockchain industry with the exponential rise of the DeFi sector.