The dominant economic system in medieval Europe was feudalism. This system was characterized by the hierarchical structuring of society, where land was owned by lords who granted portions to vassals in exchange for military service and loyalty. Peasants, or serfs, worked the land and provided agricultural produce while relying on their lords for protection. Feudalism created a decentralized political structure, profoundly shaping relationships and socio-economic dynamics during the Middle Ages, as knights defended territories while lords governed lands.