A synopsis:
Peer-to-Peer lending is when individuals loan money to other individuals who need loans.
An Analogy:
Remember when Napster first existed? The idea was that you had a song on your computer that was typically in a format known as mp3. You most likely listen to mp3s to this day through programs like iTunes, Spotify, Google Music, Pandora, etc. With Napster, you shared this song with other people through its software. This was the first time we started using the phrase, “peer-to-peer” on a daily basis. You are a peer, and you’re providing your favorite songs to another peer, or group of peers, people just like you. Peer-to-Peer lending works in a very similar way. But, instead of songs you’re using money.
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