What Is Injective Protocol (INJ)?

Injective Protocol (INJ) is an Ethereum-compatible front-running resistant completely decentralized cross-chain protocol. It not only supports existing Ethereum users but is also intended to help connect users from various blockchain networks together into a single crypto community. The interoperable backbone that powers Injective Protocol enables cross-chain interactions between sovereign blockchains.

How Does Injective Protocol (INJ) Work?

The INJ platform is community-driven, allowing for the full potential of decentralized derivatives and borderless DeFi.

It employs verifiable delay functions (VDFs) to establish a fair transaction ordering consensus based on proof-of-elapsed-time. This addresses Ethereum’s important race situations and miner extractable value concerns, as well as preventing front-running attacks and resolving same-block order disputes.

The Injective chain was built with the special requirements of not only enabling a sophisticated derivatives exchange but also as an application-specific chain for DeFi. As a result, the Injective Protocol can meet the demands of developers all over the world. The interoperable backend allows DeFi apps built on it to run effectively across different blockchains, such as Cosmos. Ethereum compatibility allows developers to use familiar tooling to build novel applications, while the interoperable backend allows DeFi apps built on Injective to operate efficiently across different blockchains, such as Cosmos.

A number of incentive mechanisms are included in the protocol layer to encourage development. On Injective, for example, hosts of relay nodes and UIs can earn up to 40% of all trade fees, which is an unheard-of incentive in the crypto market.

A variety of apps have arisen to aid in the development of a flexible and high-yield strategy. Similar apps are projected to thrive on Injective, incentivizing developers and builders to create new apps/products that benefit the community, such as decentralized hedge funds or yield-generating products.

Unique Features of Injective Protocol (INJ)

High Level of Confidence

The Injective Chain is a permissionless public blockchain network that allows any individual or organization to participate in consensus.

Everyone who joins this public blockchain network can read or write to the network anonymously. All transactions are traceable or readable, indicating a high level of confidence. You have complete control over your trading and can even develop a new derivatives market.

Resistant to Front-Running

On the Injective Protocol, there is no way front-running can take place. To acquire a pricing advantage, a predatory front-runner cannot alter the order filling procedure or intercept incoming orders.

Resolvable

The settlement logic can deterministically handle conflicting orders submitted in the same block (also known as trade collisions) and front-running.

Neutral Liquidity

The protocol does not impose any restrictions on accessing multiple liquidity pools and enables completely decentralized and trustworthy open exchanges.

MEV and Gas Fees Are Waived

Because Ethereum and the Injective Chain are linked via a bidirectional bridge. Due to its 2-layer innovative design, the Peggy Bridge, unlike existing token bridge arrangements, allows Ethereum users to smoothly bridge across any asset to enter an environment with zero gas fees for trade or miner extractable value (MEV). This allows users to trade freely without incurring charges, while also reducing network congestion.

A System That Is Decentralized

A decentralized autonomous organization (DAO) oversees all new market listings and protocol level updates, allowing the network to be completely community-driven.

The INJ token is a decentralized public utility and governance token of Injective Protocol. It is extremely important since it has an impact on governance, derivatives collateralization, market maker, protocol security, relayer incentives, and more.

Reference: https://coinmarketcap.com/alexandria/article/what-is-injective-protocol-inj-features-tokenomics-and-price-prediction