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injective-protocol

What Is Injective Protocol? How To Buy, Expectations And Predictions. Everything You Need To Know About INJ

There are several places where you can buy your crypto coins. And there are more and more places where this is possible. It is now also possible to buy your coins and tokens at Injective Protocol. In this article we explain what Injective Protocol is, how it works and where you can buy the INJ token. See a short video about Injective Protocol below.

What is Injective Protocol?

Injective Protocol is a fully decentralized exchange built on Cosmos . If you didn’t already know; then remember that Cosmos is nothing less than one of the reference protocols for interoperability between the different blockchains of the ecosystem. For example, Cosmos is compatible with the Ethereum Virtual Machine (EVM). This system ensures portability of the most popular smart contracts in the ecosystem. 

But for what? Well, just to enable you to interact with the most famous projects built on Ethereum, without being subject to the risks of network congestion and then insane costs!

Based on a “ Proof of Stake ” architecture, the Injective Protocol allows to combine both the non-custodial aspect dear to the greatest crypto experts with the security usually expected from the reference exchanges.

No compromise with the ideals of decentralization under the guise of better performance. With Injective Protocol you simply get the best of both worlds, without any problems.

Everyone will be able to participate. The goal is nothing less than to create a free and uncensored market where cryptocurrencies can be exchanged according to one’s wishes. But why not also other forms of value, such as futures contracts. For performance reasons, Injective Protocol will rely on classic blockchains, which provide stability and reliability. Also, there is the famous market making enable, synonymous with probable liquidity that is very significant!

Binance Labs

Incubated by Binance Labs, Injective Protocol promises: Such proximity to such a historic well of liquidity is a dream come true! But that’s not all, as the other key partners within the ecosystem, as well as the prospects offered by fluid trading between interoperable blockchains, make the project a bet to follow.

As is now common practice, the protocol will rely on a utility token to offer decentralized governance, staking, and various rewards (such as affiliation or discounts on trading fees). It is therefore also possible to buy the token on the Binance exchange. Later in this article we will explain more about the places where you can buy these tokens.

It says a lot that such a project is supported by Binance, as it indicates that a large company with a high reputation within the crypto world has confidence in the operation of the project. Therefore, it can be interesting for investors to invest in this project, because there is a good chance that the project will be successful in the future. This is of course not entirely certain.

How does Injective Protocol work?

The Injective Protocol consists of five main components:

  • Injective Blockchain
  • Injective exchange client
  • Injective API Vendor
  • Injective EVM RPC provider
  • Injective Bridge Contracts on Ethereum

injector ecosystem

Injective Blockchain

The Injective blockchain is the backbone of Injective’s layer 2 derivatives platform and houses a fully decentralized order book, a trade execution coordinator, an EVM execution environment, and a two-way token bridge to Ethereum.

The Injective blockchain supports smart contract execution through a modular implementation of the Ethereum Virtual Machine (EVM) on top of the Cosmos SDK (based on Ethermint). By deploying the EVM on Tendermint, users benefit from a scalable and interoperable Proof-of-Stake-based deployment of Ethereum.

Genesis uses the following contracts on Injective’s EVM:

  • Injective DEX Contracts : Injective is a decentralized exchange protocol that supports spot trading and derivatives. The DEX protocol is implemented via smart contracts (written in Solidity) and deployed on layer 2 of Injective’s EVM execution environment.
  • Injective Derivative Contracts : A contract that allows traders to create, enter into and execute decentralized perpetual swap contracts and contracts for difference on any market.
  • 0x V3 Exchange Contracts : Contracts that enable peer-to-peer spot trading.
  • Injective Coordinator Contract: Contract that follows the 0x coordinator specification for both 0x spot trades. The main purpose of the coordinator is to serve as a liquidity solution that enables more competitive pricing by avoiding front running and enabling much lower latency trading.
  • Staking Contract : A contract that maintains a compressed representation of all validators in the Injective chain and is used to control the Injective Derivatives protocol. In addition, it will handle the deposit/withdrawal of ERC-20 cross-chain tokens.
  • Injective EVM Bridge Contracts : contracts that manage the bi-directional link between Ethereum and the Injective chain.

Injective’s decentralized order book is fully decentralized, based on 0x allowing sidechain order relay with on-chain settlement. It is a decentralized implementation of the traditionally centralized off-chain order relay used by almost all decentralized blockchains.

The injection chain nodes host a decentralized, censorship-resistant order book that stores and forwards cash trading and derivatives orders.

Injective’s Trade Execution Coordinator is a decentralized coordinator implementation based on the 0x Coordinator specification. It protects front-running transactions and enables low-latency transactions through progressive rollbacks.

Injective exchange client

Injective provides an open-source front-end implementation that allows anyone to easily participate in the decentralized exchange protocol in a permission-less manner. The Injective Client is a graphical user interface aimed at the general public as well as more advanced users. 

Relays can host the client on a server to allow users to interact with the protocol. Individuals can also run the client locally to communicate directly with the protocol. Eventually, the exchange client interface will also be installed on IPFS.

Injective API Provider

Injective API nodes serve two purposes: to provide transaction relay services and to serve as a data layer for the protocol.

While users can interact with the Injective chain directly, this is annoying for most users. To this end, API nodes provide users with a simple HTTP, gRPC, and Websocket API to interact with the protocol. The API nodes then formulate the appropriate transactions and pass them on to the injection chain.

The Injective Exchange API nodes also serve as a data layer for external customers. Injective provides a data and analytics API compatible with its interface.

Injective EVM RPC provider

The nodes also provide the full Ethereum JSON-RPC API that connects to Injective’s EVM.

Injective Bridge Contracts on Ethereum

Users can transfer ERC-20 tokens from Ethereum via the bi-directional Injective Token Bridge, which serves as the Ethereum transition zone for ERC-20 tokens to transfer to the Injective chain EVM. 

The transition zone is based on Peggy (a Cosmos SDK application for arming and disarming assets in EVM-based POW chains) and is protected by Proof-of-Stake. ERC-20 tokens can be transferred to and from Ethereum to the Injective chain via the Injective Bridge.

The INJ Token

INJ is the native token of the Injective Protocol and aims to fulfill a number of roles within the ecosystem. In total, there are 5 use cases for the token in the ecosystem:

  • Protocol governance : INJ token holders will be able to vote on decisions regarding potential changes and amendments to the protocol.
  • Capturing the value of service fees: To pay network participants and then burn tokens to reduce supply and increase scarcity of tokens.
  • Collateral for derivatives : In fact, the token can be used as an alternative to stablecoins when securing a derivatives transaction.
  • Incentives to participate in exchanges : This is due to liquidity mining , ie by rewarding the actors who provide the liquidity of the protocol.
  • Proof of Stake : allows to secure the protocol thanks to the consensus method Proof-of-Stake Tendermint.

The initial supply is set at 100 million tokens and the inflation rate is set at 7% at the beginning. After all, a common goal is to get closer to an inflation rate of 2%.

Where can I buy INJ?

Do you want to buy the token of Injective Protocol? Fortunately, this is possible on most crypto exchanges. This is because Injective Protocol is quite a popular coin, which is why it is listed by most crypto exchanges. We recommend that you choose Binance. This crypto exchange offers the best security and highest liquidity. Within a few clicks you have INJ tokens in your possession.

In addition, these are also proven crypto exchanges when it comes to security. You can buy INJ tokens here without worrying about your safety. There are plenty of other crypto exchanges where things have unfortunately gone wrong in the past.

It is also possible to buy INJ on a decentralized exchange, such as Uniswap or Sushiswap . As we said before, the chances of a purchase going wrong are much higher on a DEX. You have to go through many more steps, which are difficult for some to perform. That is why it is best to choose Bitvavo .

How can I store my INJ tokens?

If you want to keep INJ in a wallet, you can do this in most cases by using the wallet of the crypto exchange you use for your purchase. Think, for example, of the wallet of Binance or Bitvavo. It is also possible to store INJ in a MetaMask wallet. Since the INJ tokens are ERC-20 tokens, you can store them in almost any wallet. This is because Ethereum projects are the most common projects. So you really never have to worry about this.

However, storing your tokens and coins in a software wallet (also called a hot wallet) is not the best and safest way. This is because these wallets are connected to the internet at all times. This means that there is always a possibility that hackers can get into the wallet. And that would mean that they also have the chance to steal your INJ tokens.

Would you like to keep your INJ safe? Then it is better to use a hardware wallet , which is also known as a cold wallet. These wallets are many times more secure than a hot wallet , because they can be disconnected from the internet. It is in fact a USB stick, which you can physically keep. By storing the hardware wallet in a safe, your INJ tokens are protected against hackers. In that case, you must of course ensure that you do not lose your hardware wallet. Ledger and Trezor are the best known and most used hardware wallets, which we can also recommend to you.

The course of Injective Protocol

The price of INJ tokens fluctuates a lot. As a result, it may be smart to buy INJ tokens at one time, and anything but wise to do so at another time. 

That is why it is important to do good research on this project before you decide to invest in it. For example, you could carry out a fundamental analysis, in which you mainly look at the picture surrounding the project.

Another way is by analyzing the prices (rate) carefully. The best way to do this is to keep a close eye on the live price to spot certain patterns. You can do that via the link below, after which you will go to the price of Injective Protocol on CoinMarketcap:

Injective (INJ) EUR 3.98 (-10.28%)

Key Benefits of Injective Protocol

It is obvious to ask how this new decentralized exchange differs from others. And most importantly, why is it a direct competitor to every other exchange, whether centralized or not?

This is because it is a project incubated by Binance Labs and thus with a major player in the DeFi world.

Injective Protocol is much faster and cheaper. After all, the protocol is part of layer 2 of Cosmos and thus does not have to support the congestion of other decentralized exchanges based on Ethereum. In addition, the protocol is intended to be free of gas charges, but only with service charges. The interoperability of Injective protocol allows trading on both Cosmos and Ethereum ecosystems.

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