Feudalism was a political and economic system prevalent in medieval Europe, characterized by a hierarchy of lords, vassals, and serfs. Lords owned large estates and granted land (fiefs) to vassals in exchange for military service and loyalty. Vassals, in turn, provided protection to serfs, who worked the land and were bound to it. This system established a reciprocal relationship between different social classes, creating a social order based on land ownership and allegiance. Although it provided stability during the Middle Ages, feudalism gradually declined due to centralization of power and economic changes, leading to the rise of nation-states and capitalism.