As things stand, peer-to-peer trading remains an indisputable force revolutionizing the digital money community, especially in Africa. As a matter of emphasis, the kind of trading, in recent times gained more patronage and now gaining more momentum than NFT in the continent. Indications, simply put the platform as the driver of Africa’s growth.
This is, however not unconnected to the fact that the continent has continued to forge ahead in the adoption of digital currencies. However, this article seeks to orientate people as regards the prospects associated with peer to peer trading and how it has unavoidably gained more ground than NFT in the black continent.
Accordingly, peer-to-peer (P2P) services remain a decentralized platform, which allows two users to interact directly with one other. Peer-to-peer trading does this, without any interference by any third party. In addition, the traders directly transact with each other through the search, screening, rating, payment processing, or escrow services.
Furthermore, peer-to-peer services explore technology to withstand the transaction costs of trust, enforcement, and information asymmetries. It offers payment processing, information about buyers and sellers, and quality assurance to its users.
How the trading works
In today’s world, peer-to-peer trading offers services, considered to be part of the sharing economy. However, while the platform gives users control in their trading, the usage of a third party like Binance remains advisable. Why? The presence of such a party help stimulate transactions and protect users on the platform. As hinted, the binance P2P for instance helps both buyers and sellers reduce frauds prevalent in the digital world.
Accordingly, Binance employs escrow to safeguard the digital currencies till the confirmation of the transactions from both ends. For example, if you decide to trade your crypto for fiat, Binance, expectedly escrow the crypto. Afterward, the seller sends the crypto, and after the confirmation of the transaction, both traders get credited.
Peer-to-peer trading gaining more grounds in Africa
The increasing popularity of peer-to-peer trading in Africa continent remains farfetched. As at now, the larger portion of the operations of crypto in the black continent are P2P oriented. With this development, peer-to-peer enabled trading, already overwhelms the existing level of NFT adoption in Africa. Despite the highly speculations associated with crypto, people in Nigeria, for instance incessantly trade commodities, pay debts using cryptocurrencies.
More so, the increasing popularity of P2P platform in Africa remains connected to it’s enhancement of remittances and commercial transactions. The outright ban of the trend in some African countries, devoid any big implications on crypto investors in the continent. Many small scale users appear undeterred and continuously use P2P in navigating legal and regulatory headwinds.
In a report by Reuters, NFT sales increased to $10.7 billion in the third quarter of 2021 in Africa. Furthermore, Statista indicated that the NFT sale level in the art sector rose from 12,085 in May to 94,523 in September.
The disruption in the level of preference of the platform remains connected to the speed and convenience of transactions in the blockchain. However, NFT majorly simplifies the market for artists and collectors.
As for P2P, Chainalysis reports indicated Africa’s adoption of the P2P cryptocurrency market than any other region. The continent possesses about 96% of all transaction volume, versus 78% for all regions combined.
In conclusion, all the above indications bear testimony to the indisputable fact that peer-to-peer trading in Africa enjoys overwhelming patronage and loyalty in spite of all odds occasioned by restrictions of crypto trends by governments in the black continent.
NFT also enjoys a similar level of adoption, but not as overwhelming as that of P2P. It however, remains to be seen if such record will be sustained and as well replicated in other regions
