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NDAX New Coin Listings: What is Injective Protocol (INJ)

Feb 07, 2024
byNDAX Labs

What is Injective Protocol (INJ)? 

Injective Protocol (INJ) is a DEX (decentralized exchange) blockchain built on the Cosmos; as such it offers cross-chain (interoperable) margin, derivatives and forex futures trading. 

**Warning! It is important to DYOR (Do Your Own Research) before investing in any asset, especially new crypto projects. Don’t become “exit liquidity” for early venture capital investors, crypto influencers and large professional traders: Their job is to make money by buying into new crypto projects early, marketing the project, and then selling these coins to a mass of largely unaware public. Investing in any asset class carries tremendous risk: Crypto is no exception. Never invest more than you are completely willing to lose.**  

Injective Protocol Details  

Injective is a unique layer-one blockchain built for finance, known for its robust, decentralized financial modules and interoperability. It's a smart contract-enabled platform using the Cosmos SDK (with its Tendermint PoS consensus mechanism), enabling instant transaction finality and high transaction throughput. 

 It's a blockchain platform designed specifically for financial applications. It serves as an open, interoperable Layer-1 blockchain, facilitating the development of cutting-edge DeFi (Decentralized Finance) solutions. These include decentralized exchanges for spot and derivatives trading, prediction markets, lending protocols, and more. 

What sets Injective apart is its provision of robust financial infrastructure elements that applications can utilize. This includes a fully decentralized, MEV-resistant (maximum extractable value) on-chain order book, ensuring transparency and security. Additionally, all types of financial markets, such as spot, perpetual, futures, and options, operate entirely on-chain. 

 Moreover, Injective offers decentralized cross-chain bridging capabilities that are compatible with various blockchain ecosystems, including Ethereum, IBC-enabled blockchains, and those not compatible with the Ethereum Virtual Machine (EVM), such as Solana. 

 Injective further enhances interoperability through its next-generation smart contract platform, which is based on CosmWasm, allowing advanced interchain functionalities. Built using the Cosmos SDK and employing a Tendermint-based Proof-of-Stake consensus mechanism, Injective ensures instant transaction finality while sustaining rapid performance of over 10,000 transactions per second (TPS). 


The History of Injective Protocol 

Injective was established by Eric Chen and Albert Chin. Chen graduated with a degree in Finance from New York University's Stern School before joining Innovating Capital as a Venture Partner, where they were an early investor in the Injective Protocol. 

Chin, on the other hand, was previously employed as a Software Development Engineer at Amazon following the completion of their master's degree in Computer Science at Stanford University. 

Injective has secured tens of millions of dollars of venture capital funding, from renowned investors such as Pantera Capital, Binance, Jump and Mark Cuban, among others. 


About INJ 

How It Works: 

Injective Protocol comprises key components to support its decentralized exchange functionalities: 

1. Injective Chain: This decentralized exchange (DEX) protocol, built on Cosmos, enables trading of Ethereum tokens while addressing scalability issues. It features modules like Auction, Exchange, Insurance, Oracle, and Peggy for various functionalities such as bidding, market creation, underwriting, price data sourcing, and Ethereum bridging. 

2. Injective Exchange: Based on the 0x protocol, this order book model exchange is transparent and accessible, offering open-source components including the user interface, smart contracts, and order book management. It aims to prevent trade front running through a Trade Execution Coordinator (TEC) that introduces delays, ensuring fair trading. 

3. Injective Hub: Serving as a dashboard, the Injective Hub offers users an overview and tools to engage with the protocol effectively. Users can stake INJ tokens to become validators, delegate tokens for rewards, and participate in community governance by proposing and voting on platform developments and changes. 

What INJ Is Used For: 

INJ, the native utility token of Injective, is integral to the network's governance, security, and operability. It empowers community members to participate in governance decisions, validate transactions, engage in burn auctions, and contribute to the network's PoS security. INJ also plays a crucial role in incentivizing developers and securing the decentralized applications within the ecosystem. 

Key Takeaways:  

- Layer-1 Smart Contract Blockchain: Injective offers an advanced Layer-1 blockchain with interchain capabilities, achieving high speeds and zero gas fees. 

- Unlimited DeFi Applications: With robust infrastructure and financial primitives like an on-chain order book, Injective enables the creation of diverse DeFi applications. 

- Cross-Chain Trading and Yield Generation: Supporting trading and yield generation activities across various Layer-1 blockchain networks such as Cosmos and Ethereum, Injective facilitates seamless cross-chain operations. 

- Community-Driven Network Governance: Governed by a decentralized community, Injective adopts a Decentralized Autonomous Organization (DAO) structure for voting on new innovations and developments. 

Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.