Peer to Peer (P2P) payments is a mechanism through which the user can transfer funds from his bank account to another individual’s account via the digital medium i.e., Internet or a mobile device. Payments are categorized on the basis of transfer i.e., to an account within the bank or outside the bank.

Here is the Year 2008 abstract on Bitcoin: A Peer-to-Peer Electronic Cash System

Doing Away with the Financial Institution

A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.

Solution to Double Spending

A solution to double-spending is proposed using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, thus forming a record which cannot be changed without redoing the proof-of-work.

Proof of Sequence Witnessed

The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers.

Minimal Structure Network

The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and re-join the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.

Privacy

The traditional banking model achieves a level of privacy by limiting access to information to the
parties involved and the trusted third party. The necessity to announce all transactions publicly
precludes this method, but privacy can still be maintained by breaking the flow of information in
another place: by keeping public keys anonymous.

The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the “tape”, is made public, but without telling who the parties were.

Thus, it is evident that the focus of S. Nakamoto with Bitcoin (BTC) is to work past the trust-based model. The electronic system that works beyond the trust factor is Bitcoin (BTC) with the unstructured simplicity.