The main economic system prior to the Industrial Revolution was feudalism, which dominated medieval Europe. In this system, land was the primary source of wealth and power, and social hierarchy was rigidly structured. Lords owned large estates and granted portions of land, called fiefs, to vassals in exchange for military service and loyalty. Peasants, or serfs, worked the land for the lords, providing agricultural labor in return for protection and a place to live. The feudal system limited economic mobility and was characterized by local production and barter, with little emphasis on trade or market economies that emerged later with industrialization.