The main economic system that dominated Europe during the Middle Ages was feudalism. This hierarchical system structured society around relationships derived from land ownership and obligations. Lords owned large estates and granted parcels of land, or fiefs, to vassals in exchange for loyalty and military service. Peasants or serfs worked the land in return for protection and a place to live. Feudalism created a system of reciprocal obligations that governed social and economic interactions across Europe, influencing political power and social status well into the Renaissance. As trade and towns grew, later transformations would challenge and eventually dismantle this feudal structure.