Blockchain plays a pivotal role in P2P crypto exchange development by providing a secure, transparent, and decentralized framework. It eliminates the need for intermediaries, enabling direct transactions between users. Blockchain ensures data immutability, protecting transaction records from tampering. Smart contracts automate processes like trade execution and dispute resolution, enhancing efficiency and trust. The decentralized nature of blockchain minimizes the risk of hacks and ensures user data privacy. Additionally, its transparent ledger fosters accountability, allowing users to verify transactions independently. Overall, blockchain forms the backbone of P2P crypto exchanges, revolutionizing the way digital assets are traded with unparalleled security and transparency.