P2P is a common abbreviation mentioned in both computer and finance fields, but do they have the same meaning?
Most of the P2P mentioned now refers to Peer-to-peer networks (user group to user group). However, P2P also represents another concept, which is Point-to-point.
Point-to-point narrowly requires a dedicated line physical link and belongs to the concept of network topology, so it is less used outside professional fields. Peer-to-peer networks are content distribution protocols and structures, integrating client and server, which is a network architecture different from the client-server (C/S) architecture.
Some articles say that “BitTorrent protocol is a point-to-point (Peer-to-Peer) transmission protocol.” The Chinese part of this description is wrong, but the English part is correct. It may be because someone previously misunderstood that P2P here should be an abbreviation for Peer-to-peer, so it was translated into point-to-point, and as a result, this error could not be corrected.
The financial P2P is the same, referring to Peer-to-peer lending. It belongs to a type of shadow banking, which is non-traditional banking but assumes the functions of a bank. P2P lending platforms only act as intermediaries, and both creditors and debtors are customers of the P2P lending platform.
Since the platform’s operating costs are lower than traditional banks, the lending rates are higher and the lending review is more relaxed. However, the possibility of bad debts is also high, and some people believe that shadow banking fueled the 2008 financial crisis.


