Injective Crypto (INJ): What It Is, Advantages and How It Works

Creating a fully decentralized exchange and public tokens stands as a pivotal objective for Injective Crypto (INJ) Protocol, a noteworthy player in the cryptocurrency domain. This project, initiated in 2020, envisions an ecosystem where users, armed with INJ tokens, wield control over the exchange, free from the direct influence of organizations or governments. In this article, we aim to shed light on the Injective Protocol and its digital currency, INJ, presenting valuable insights for potential investors keen on exploring opportunities in the Injective ecosystem.

What is Injective Crypto (INJ)?

Injective Crypto (INJ) vision is to establish a decentralized exchange, allowing users with digital currencies to govern the network. Launched officially in 2020, it operates on the Ethereum network with a two-layer structure, facilitating seamless access to the DeFi network. By mitigating the constraints of traditional decentralized exchanges (DEX), the development team empowers users to enhance transaction speed and liquidity.

The Injective Exchange serves as the network’s transaction hub, employing a decentralized operating system with transparent and public data and tools. Investors play a crucial role in providing liquidity to the platform and, in turn, are rewarded for their contributions.

The native digital currency of this project is known as Injective (INJ). Being Ethereum-based, INJ exhibits versatile features, placing it in the category of multipurpose tokens.

Who Founded Injective Crypto (INJ) Labs?

Eric Chen – Founder and Leader in Blockchain Innovation: Eric Chen, the visionary behind Injective Lab, serves as the driving force in the research and development of decentralized financial markets. Armed with an undergraduate degree in finance, Eric’s journey in the cryptocurrency landscape began with roles as a researcher and trader at a prominent crypto fund. Prior to founding Injective, Eric dedicated his expertise to enhancing the blockchain space. His notable contributions include spearheading investments in influential companies such as ChainLink, 0X Protocol, and Cosmos. Eric Chen is celebrated for his profound knowledge of blockchain protocols, traditional finance, and a holistic understanding of blockchain-based communities.

Albert Chon – Co-founder and Chief Technology Officer: Albert Chon, the Co-founder and Chief Technology Officer of Injective Protocol, brings a wealth of technical prowess to the project. Albert’s educational background includes both undergraduate and graduate studies in computer science from Stanford University. Before his journey with Injective, Albert honed his skills as a software development engineer at Amazon. Leveraging Ethereum technology, he contributed to the creation of innovative solutions that found applications in various projects. Collaborating with Eric Chen, Albert co-founded Injective Labs, playing a pivotal role in shaping the technological landscape of decentralized finance.

Together, Eric Chen and Albert Chon form a dynamic duo, fusing financial expertise with cutting-edge technological innovation to propel Injective Protocol as a leader in the decentralized financial markets realm.

Purpose of Injective Crypto (INJ) Creation:

Injective’s primary objective is to establish decentralized exchanges and public networks, granting INJ token holders control over the project’s development without the interference of centralized authorities. The foundation of this endeavor, known as Injective Chain, operates as a decentralized ledger utilizing elements of the Ethereum virtual machine.

Applications of Injective Crypto (INJ):

Injective Protocol serves as an enhancement to decentralized exchanges (DEX), introducing innovations that embrace complete decentralization. The project offers an adaptive, diverse, and flexible platform with decentralized financial functionalities. This leads to improved liquidity, faster execution, and enhanced diversification, positioning it as a pioneering decentralized exchange.

How Does Injective Crypto (INJ) Operate?

The Injective Chain serves as the backbone, playing a crucial role in the functionality of the protocol’s core components. Exchange Client 0x processes orders, ensuring decentralization and enhancing transaction efficiency. INJ nodes host side chain relays, activating orders on the chain. Coordinators oversee robots that execute transactions in less than a second, eliminating costly delays. The protocol utilizes a confirmable delay function to prevent new orders from superseding previous ones. Additionally, it features a two-way token bridge, leveraging the INJ Peg smart contract, the Ethereum bridging module, and the Cosmos network for seamless ERC-20 token transfers.

Benefits of Injective (INJ):

1. High-Speed Cryptocurrency Exchanges:
   • Injective Protocol excels in facilitating rapid cryptocurrency exchanges across different platforms, enhancing transaction efficiency.
2. Low-Cost Transactions:
   • Users benefit from low-cost cryptocurrency exchanges between different platforms, making it an economical choice for traders and investors.
3. Automatic Polling and Crowd-Based Management:
   • The protocol incorporates automatic polling and crowd-based management, streamlining decision-making processes and fostering community engagement.
4. Mining System for Increased Token Value:
   • Injective Protocol features a mining system that contributes to the appreciation of the INJ token’s value, providing an additional incentive for participants.

Best Injective Wallets (INJ):

For those looking to keep or trade in the injectable digital currency, it’s crucial to choose a secure wallet that allows control over the private key. Here are some recommended wallets for INJ:

1. Hardware Wallets:
   • Trezor Wallet
   • Ledger Wallet (Nano X)
2. Mobile and Desktop Wallets:
   • MyEtherWallet (Desktop)
   • Trust Wallet (Mobile)

Injective Crypto (INJ) Ecosystem Services:

The Injective ecosystem hosts a myriad of projects. Some notable services include:

1. Helix:
   • A decentralized exchange utilizing an order book model, Helix boasts zero fees, a user-friendly interface, and cross-chain market capabilities.
2. Astroport:
   • A decentralized exchange employing an automatic market maker model, Astroport utilizes the CosmWasm module.
3. Front Runner:
   • A Predict Market platform offering a binary option module, Front Runner provides an innovative approach to decentralized prediction markets.

INJ Token Overview:

The INJ token is the cryptocurrency native to the Injective network, supported on the Ethereum (ERC-20), Binance Smart Chain (BEP20), and Cosmos networks.

1. Governance Token:
   • Empowers users to vote on proposals through a decentralized autonomous organization (DAO) structure.
2. Earning from Commissions:
   • Builders of exchanges on Injective receive 40% of the commissions generated.
3. Liquidity Supply Reward:
   • Participants in liquidity supply receive a portion of the income generated by the Injective platform.
4. Staking:
   • Staking INJ tokens allows users to become validators or delegate tokens to existing validators, with rewards proportionate to the stake’s size.
5. Network Fee Payment:
   • All transactions within the network incur fees paid in INJ tokens. Sixty percent of total network fees every two weeks is allocated to repurchasing and burning INJ tokens, reducing the token supply over time and potentially increasing its value.

Distribution of 100,000,000 INJ Tokens:

• 9% sold on Binance Launchpad.
• 6% sold in the initial pre-exchange sale.
• 16.67% sold in private sale.
• 20% allocated to the team.
• 2% earmarked for advertising.
• 36.33% designated for ecosystem growth.
• 10% dedicated to the growth of the Injective community.

Injective Project Roadmap:

2018:

• Introduced and developed by Binance Labs.

2019:

• Publication of the initial version of the order book.
• Awaiting the initial release of derivatives.

2020:

• First round of fundraising by Pantera Capital.
• Launch of INJ token by Binance Launchpad.
• Solstice test network launch.

First Quarter of 2021:

• Launch of Equinox test network.

Second Quarter of 2021:

• Capital injection from Pantera and Mark Cuban.

Third Quarter of 2021:

• Supply of Injective Hub.
• Supply of the Injective multi-chain bridge.
• Enterprise API setup.

Fourth Quarter of 2021:

• Supplying the main Injective network.
• Enabling Inter-Blockchain Communication (IBC).

First Quarter of 2022:

• Release of version 2 of the Injective bridge.
• Implementation of the CosmWasm smart contract layer in the test network.

Second Quarter of 2022:

• Connecting Binance to the Injective mainnet.

Third Quarter of 2022:

• Fundraising from Jump and Brevan Howard.
• Setting up the CosmWasm smart contract layer.
• Initial version of the binary option.
• Activation of cross-chain accounts.

Fourth Quarter of 2022:

• Wormhole bridge connection to Injective.
• Fiat access to Injective.

First Quarter of 2023:

• Launching an Injective investment group.
• Launching the Ninja Ambassadors program in Discord Injective.

Second Quarter of 2023:

• Launching the mainnet of the Pyth project on the Injective platform.
• Deployment of the first multi-signature protocol by Apollo Safe in the Injective network.

Collaborations and Injective Investors:

Polkadot Network:

• Facilitates inter-chain communication and interoperability between different blockchains.
• Collaboration with Injective expands cross-network decentralized functionality.

Chainlink Oracle:

• Oracle provider facilitating secure price sources in financial markets.
• Partnership with Chainlink enables Injective users to create diverse markets and trade in them.

Elrond Network:

• Highly scalable, fast, and secure blockchain platform for DeFi applications.
• Collaboration with Elrond provides new markets and access to Elrond’s network cryptocurrency, Egld.

Ocean Protocol:

• Blockchain ecosystem allowing sharing of data between entities.
• Collaboration aids Injective in adding new products to its protocol.

Investors:

• Pantera Capital, AU21 Capital, Binance Labs, Mark Cuban, and BlockTower.

Injective’s robust roadmap showcases its evolution and milestones, while collaborations with key players in the blockchain space strengthen its position in the decentralized finance landscape.

From which exchanges can I buy INJ tokens?

Centralized Exchanges:

1. Binance
2. KuCoin
3. Kraken
4. CoinEx
5. Huobi
6. Gate.io
7. Poloniex

Decentralized Exchanges:

1. UniSwap
2. PancakeSwap
3. SushiSwap
4. MDEX
5. Trader Joe’s
6. Helix
7. Orion Protocol

Important Features of the Injective Protocol:

1. Unlimited DeFi Market Access:
   • Injective Protocol enables users to access, create, and trade unlimited DeFi markets. It supports the trading of digital currencies and a wide range of future, permanent, and complex financial derivatives in a decentralized manner.
2. Quick Transactions without Gas Fees:
   • Transactions on the Injective protocol are executed swiftly and without gas fees, enhancing user experience and reducing transaction costs.
3. Cross-Chain Compatibility:
   • Users can seamlessly exchange assets between different blockchain networks, including Ethereum, Cosmos, and Binance Smart Chain. The protocol also facilitates transactions on Cosmos-based projects like Terra.
4. Interactive and Customizable DeFi Applications:
   • Injective Protocol is the first interactive and customizable protocol for decentralized financial applications. Developers can create cross-chain dApps using Ethereum-based tooling, ensuring fast transactions and decentralized applications, while also receiving unique developer rewards.
5. Scalability and Ethereum Compatibility:
   • Ethereum’s native compatibility allows developers to use existing tooling to power their dApps. The protocol supports running DeFi applications on parallel chains, ensuring unlimited scalability and reaching millions of users.

Security of the Injective Protocol Network:

• Consensus Mechanism:
  • Injective Protocol operates on a Tendermint-based proof-of-stake (PoS) consensus mechanism. Prominent validation nodes contribute to the security and decentralization of the network.
• Reduced Carbon Footprint:
  • The Injective consensus mechanism significantly reduces the carbon footprint by 99%, ensuring environmental sustainability while confirming instant transactions.

Distinguishing Features from Other Digital Currencies:

• Decentralized Finance (DeFi) Focus:
  • Injective Protocol addresses financial challenges through decentralized blockchain technology, allowing users to invest in and benefit from a decentralized financial organization (DeFi). It encourages user participation and innovation.
• Accessibility and Equal Voting Rights:
  • The protocol is accessible to everyone, emphasizing decentralization. It ensures equal voting rights for all participants, regardless of their capital, fostering a democratic governance structure.
• Transaction Fee Payment with INJ:
  • Users pay transaction fees with the native currency, INJ, promoting the sustainability and continuous development of the platform.

Structure of the Injective Crypto (INJ) Protocol Project:

1. Layer Two Decentralized Derivatives Trading:
   • Achieves high-speed processing of financial transactions with zero fees.
2. Inter-chain Trade and Yield Generation:
   • Supports various trading activities and enhances yield between different layer one blockchains.
3. Community-based Network Governance:
   • The decentralized community manages the Injective Protocol network through mechanisms such as decentralized autonomous organization (DAO), enabling community-driven decisions.
4. Cash Extraction Reward:
   • Rewards contributors for the continuous growth and development of the Injective Protocol network.

Injective Protocol’s comprehensive structure and features position it as a versatile and community-driven platform in the decentralized finance landscape.

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