Injective Protocol gives traders unparalleled access to new decentralized derivatives markets without any restrictions, gas fees, or limitations.
With their security, speed, efficiency, blockchain systems are hailed as the herald of a new dawn in human civilization. The technology is undoubtedly efficient. The way it is automated also brings financial and economic play never thought possible. No middleman, no commission agent – systems built on blockchain technology offer advantages legacy systems can never compete with.
However, one issue is plaguing the technology: scalability. Blockchain is fast, no doubt. Yet, as more and more users join a network, the load leads to delays in confirming transactions. With a limited number of TPS, blockchain fails in this aspect.
Decentralized finance, or DeFi, is the fastest growing sector in the blockchain industry. The ability to conduct financial transactions online without worrying about trust issues, high commission charges, and reliability has propelled DeFi to the forefront.
With nearly $10.8 billion locked in DeFi systems globally, the adoption is seriously hampered by the scalability issues.
Injective Protocol: Layer 2 Solution
Building a layer on top of an existing blockchain system is called layering. These can work in conjunction with the main-net, yet be independent at the same time. It allows for several new ecosystems to be built that work on their own speed. It does not bog down the main blockchain, only communicating with the parent chain when necessary.
Injective Protocol is a layer two solution for DeFi that intends to bring the technology to a level where the extreme customization and speed can be delivered together. Today, many platforms claim to be fully decentralized, but the fact is that they are not. At one point or another, they need to centralize their systems, by it, the internal infrastructure, order books (in case of an exchange), geographical restrictions, etc.
The most quoted reason is that a full decentralization sacrifice on the speed and user experience. Injective is a layer two solution that says otherwise.
Injective Protocol Features
Injective has four main features that it intends to bring to the world. Each is designed to be fully decentralized and without any human interference:
- Injective Chain: Built using the layer 2 Cosmos method, the Injective chain is the first fully trustless protocol. This allows for building a pure DeFi infrastructure that does not require any authority to monitor order execution or else.
- Injective Exchange: A real DEX, the Injective Exchange, is an entirely open-source platform. It uses layer two to bring in the speed of order matching and execution that plagues other DEX. No geographical limitations and the lowest entry barriers are vital aspects.
- Injective Futures Protocol: Peer to peer, the Futures Protocol will run perpetual and futures Contracts for Difference that are customizable, giving anyone a chance to create and trade derivatives.
- Injective Governance: Taking decentralization to the extreme, the whole Injective ecosystem will be governed by the community. Anyone who holds Injective tokens can have a voice in the decision-making process of the platform.
Injective Protocol intends to deliver a fast and reliable layer two solutions and the DeFi market and create a system that is truly owned by the public. Not a service, but a public utility, the unique nature of Injective allows individuals to create their own derivative and trade markets.
Binance Labs, Elrond Network, and Pantera Capital are in Injective`s Ecosystem
Injective Protocol has meaningful partnerships within the blockchain industry, including Elrond Network, Findora, Frontier, Kava, Wootrade, Maskbook, the leading cryptocurrency exchange Binance and many more.
The DeFi project Injective Protocol was one of eight projects inducted into the Binance Labs Incubation Program in 2018, with the mission to resolve some of the shortcomings DEXs face, such as high latency and low liquidity. This engagement of both is very promising. Let’s assume speculative that it’s only a matter of time till Injective Protocol` cryptocurrency INJ is traded on Binance. It is interesting to see which community fundraising model Injective Protocol will decide to, an ICO, IEO, or a modified alternative public token sale.
The decentralized derivatives exchange protocol Injective Protocol seems to be a real unicorn. The team achieved it to raise $2.6m in seed funding from well-known investors, such as QCP Soteria, Axia8 Ventures, K42, Boxone Ventures, Bitlink Capital, BitScale, Krypital Group, The Cabin Capital, and Innovating Capital. Pantera Capital, one of the most renowned venture capital firms in the world, led the seed investment round. They recognized the Injective`s potential to be a “strong contender” to expand decentralized finance (DeFi) beyond Ethereum’s platform, which becomes the DeFI revolution’s bottleneck this year, according to Paul Veradittakit.
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