What is Injective Protocol?

INJ is a popular altcoin among sports fans. However, before you Trade INR, it is vital that you understand what you are investing in. Let's find out what's INJ and how it functions.

Layer-one blockchain platform Injective is open and interoperable, making it ideal for developing robust DeFi applications. Injective is the only solution of its kind to offer a universal library of financial infrastructure primitives that can be easily integrated into preexisting systems, such as a high-performance on-chain decentralized exchange infrastructure, decentralized bridges, oracles, and a composable smart contract layer built on top of CosmWasm.

The primary exchange module of Injective offers cutting-edge features such as a sophisticated on-chain order book and matching engine for spot, perpetual, futures, and options markets, resistance to Miner-Extractable Value (MEV) through regular batch auction order matching, and no gas costs for customers. Injective uses a Tendermint-based Proof-of-Stake consensus method and the Cosmos software development kit (SDK) to provide immediate transaction confirmations at scale (10,000+ TPS).

Natively supporting IBC, Injective is also highly compatible with other layer 1s like Polygon and Solana (through an upcoming Wormhole integration). Injective is the first network in the Cosmos ecosystem to handle Ethereum assets natively, and it does so by being compatible with Ethereum via its own decentralized ERC-20 token bridge.

CosmWasm, the smart contract implementation on Injective, enables frictionless smart contract transactions across several blockchains. But only Injective's blockchain allows for fully automated smart contract execution. This feature provides developers with a potent building piece for implementing innovative use cases that are not feasible on any other chain.

INJ is Injective's native utility token. A small supply of INJ is needed for the PoS network's governance, token burn auctions, and staking. A distinctive feature of Injective is its weekly burn auctions, where 60% of dApp fees are put up for auction. The result is a substantial reduction in INJ availability over time. One of the ways in which the INJ burn auction adds value to the Injective ecosystem is through the unique mechanism of the auction itself. At this time, Injective has the highest token burn ratio of any project in the sector.

INJ uses include protocol governance, dApp value capture, PoS security, developer incentives, and staking. Each of these applications is elaborated upon below.

• Protocol Governance: The INJ token regulates every component of Injective, including chain upgrades. Since Injective's mainnet debut, the community has participated to governance, with all ideas passing a DAO vote.
• Protocol Fee Value Capture: 60% of dApp fees enter an on-chain buy-back-and-burn auction to preserve INJ's deflation
• Tendermint-based Proof-of-Stake (PoS) Security: INJ is used to secure the Injective blockchain using a proof-of-stake mechanism. Validators and delegated can stake.
• Developer incentives: 40% of the fees that users pay for dApps built on Injective are used to pay new developers to build on Injective, which brings a steady stream of new developers to Injective.

How is Injective protocol different?

Injective delivers next-generation financial infrastructure for constructing DeFi apps on its blockchain. These apps are decentralized, quick, cross-chain, low-fee, and secure

Some key Injective protocol features include:

• Layer-1 smart contract blockchain: Injective delivers a state-of-the-art interchain L1 with zero gas fees.
• Unlimited DeFi applications: Injective's powerful infrastructure and financial primitives allow anybody to construct DeFi apps, such as an on-chain order book.
• Cross-chain trading and yield generation: Injective supports trading and yield generation between layer-1 blockchain networks like Cosmos and Ethereum
• Community-driven network governance: Injective's decentralized community votes on future developments using a DAO framework.
• Pioneering interoperability: Injective has native links to Ethereum, Cosmos, Solana, and more
• Fully customizable: Modify any parameter to meet your use case.
• Intuitive developer experience: Flexible and expressive programming environments driven by Rust and Golang.
• Environmentally friendly: Tendermint PoS reduces carbon footprint by 99%.

Network security

Tendermint's proof-of-stake (PoS) consensus algorithm underpins the Injective Protocol blockchain. Prominent validators contribute to not only the decentralization and security of the network but also its stability. The consensus technique used by Injective ensures that all transactions are finalized instantly and results in a 99% reduction in the network's carbon footprint.

Founders

Injectvie Labs was the first research and development business to contribute to Injective Protocol.

Eric Chen is the co-founder of Injective Labs. Previously, he was a cryptography researcher and trader at a large crypto fund, where he oversaw pioneering market-neutral trading initiatives in the blockchain realm and investments in high-profile startups, including 0x, ChainLink, and Cosmos. Chen is fluent in the protocols and communities of both the East and the West regarding blockchain technology, and he also has considerable knowledge of traditional banking.

Albert Chon is the CTO of Injective Labs. After earning his Bachelor's and Master's degrees in computer science from Stanford, he worked as a software development engineer for Amazon. Not only did he start Injective Labs alongside Eric Chen, he is also well recognized as the creator of a new Ethereum standard currently used by several industry heavyweights.

Where can you buy INJ?

INJ is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

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