What do you mean by the blockchain for finance?

Despite the widespread advocacy for inclusivity, it is critical to stay focused on your primary objective. If you do not, then how do you make your mark on the world?

Now don’t get me wrong, there’s nothing wrong with being a jack of all trades, but guess what’s not cool? Not being able to make an unerasable record.

Guess again? It’s also not cool to have a blockchain with various utilities and no specific use case.

I recently came across a post where the Injective ecosystem was said to be the indicator for the next bull run. To what would the success of this constantly growing ecosystem be attributed?

Several years have passed since the inception and practicalization of the idea of “DeFi.”

What if I told you that many have tread this path with no significant result?

Lack of a solid problem-solving concept to keep innovation moving forward and the inability to adapt to trends while providing optimum services.

This brings us to the point of utmost curiosity, How?

How did the injective ecosystem grow this significantly?

A little background research on the Co-founders, Albert Chon and Eric Chen would give you an advancing point of view as to why such innovation came to be realized. Both individuals independently made marks in their different areas of specialization before the fruition of the injective blockchain.

An article on CoinBureau.com authored by Jasid Jawir, goes a step further in explaining the previous roles of both individuals co-founding Injective and their current positions.

“Prior to injective, Chen was a researcher at Innovating Capital, working on trading strategies and protocol research. Chon’s resume includes a stint at Amazon, where he was a software development engineer. Chon went to Stanford, where he completed his MS in computer science with a specialization in systems.”

With the adoption of blockchain technology in several aspects of human lives, it was only expected that it would revolutionize the finance sector too; after all, our finances are an avenue to live more comfortably.

With the reality of Defi, a lot of the problems posed by traditional finance were solved, some of which include;

• Transparency
• Security
• Access to more financial services
• Innovation

Now, upon the birth of every solution, there’s the discovery of how much further we can go. This is a concept some would refer to as greed.

“Man’s desire knows no bounds. Man will never and can never be satisfied. Man’s existence is defined by his greed. Man is in essence a greedy being.” -Thomas Hobbes

In my opinion, these desires have led to continuous innovation and discovery for better answers to pre-existing problems.

We will now go further to discuss the injective blockchain, its features, and some notable happenings in the ecosystem.

Injective is a lightning-fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps.

Due to its DeFi-focused Layer-1 blockchain, Injective is in direct competition with some of the biggest smart contract networks available on the market, including Avalanche (AVAX), Solana (SOL), and Ethereum (ETH).

The official documentation for the injective blockchain refers to it as “a blockchain built for finance” and goes on to state rationale points for why building on the blockchain benefits both users and builders.

Some of these points include:

• Designed for decentralized finance:
• Interoperability
• Gain experience as a creative developer
• Scalability

Get more in-depth information here

With such intuitive insights, it’s firm to believe that the injective blockchain is a pioneering technology that positively influences the perception of Defi.

Here are some characteristics that highlight Injective as a major player in the blockchain industry:

• Interoperability: With the Cosmos SDK as its foundation, Injective can interact with other blockchains built on Cosmos as a result of the inter-blockchain communication protocol. In this category, the inSVM (injective Solana virtual machine) and inEVM (injective Ethereum virtual machine) also allow developers to deploy both Solana and Ethereum contracts with the same codes.
• Community-driven: This involves the creation of an injective ninja programme where community members can earn incentives and gain recognition as a result of their contribution to the ecosystem
• Significant partnerships and investments: Ranging from partnerships that go as far back as 2021 with institutions like Alliance Block to recent partnerships like one with The Graph, this shows the intentional aim towards growth.

So here’s the deal, Defi thrives because of the access it gives based in relation to the restrictions set by traditional finance systems, such as the involvement of intermediaries, centralization, inaccuracy, and non-transparency within the system, and other issues arising from societal hierachy.

With the adoption of DeFi also came decentralized exchanges (DEX), where users make use of features like the AMM (automated market maker) to facilitate transactions and also create a secure environment through the interaction of smart contracts.

The anonymity and security provided by DEXs do not necessarily mean that using CEXs should not be considered an option.

But what if you could have the best of both worlds like the Dapp “Helix”?

With the realization of Defi and the introduction of Dex, perhaps we can go a notch higher.

The issue of lower liquidity when compared to a CEX has received major attention, resulting in slower transactions, higher slippage, and higher transaction fees.

The deal with injective is that it is a blockchain built for finance; hence, it brings resolutions for some challenges presented by DEX with “Injective blockchain”

When discussing Dex’s, the most prevalent considerations would be swaps, slippage, and yield percentage.

With Injective blockchain, it goes beyond liquidity provision or trading tokens.

“When we talk about Injective blockchain, we’re not only talking about a chain that allows you to transfer tokens and farm yields. Rather, we’ll take a look at a chain that focuses on derivatives markets, Prediction markets, and lost more. The injective chain aims to deliver decentralized futures, margin, spot trading, and everlasting swaps to DeFi investors. Every component that supports the chain, according to Injective Labs, is constructed in a censorship-resistant, public, and entirely trustless manner. Injective Chain, Injective Exchange, and the Injective Futures platform are the project’s three main components.” -Akash Takyar, CEO LeewayHertz.

A solution to pre-existing finance issues while also letting you leverage the best features of decentralized finance. The whole idea behind injective chain is to give you access to a wider market without the restrictions of traditional finance, along with the benefits of a decentralized market across different blockchains.

After a comparative study of the Injective blockchain and other Layer 1, it concludes that injective builds on the security and decentralization provided by Layer-1 blockchains (Cosmos) and then employs Layer-2 scaling strategies to enable faster and cheaper transactions.

Before dropping the pen, is Injective just a chain for finance?

No, it isn’t. it is a chain for all take a look at what Julie lee had to say about NFTs and it’s a marketplace on Injective

“Someone asked me the other day what an NFT Marketplace Talis Protocol has to do with a blockchain for finance. Here’s what I said, and why I don’t think they’re at odds with one another. Finance isn’t exclusive to one thing. Just as in the beginning, we were clear that Injective is not just for exchanges, it’s also not just for lending/borrowing tools, liquid staking, or trading bots. Being a blockchain for finance also means supporting all types of transfers of value — Talis protocol being built on Injective allows the team to take advantage of near-instantaneous transaction times, zero gas fees, automated smart contracts, and more. dApps can always utilize any of the plug-and-play modules that Injective provides to fit their needs, to create robust and multi-faceted platforms for their users. And of course, what makes Injective different is its core on-chain order book, which allows protocols to quickly launch and list a token without going through the arduous process that a lot of smaller (but widely loved) projects experience when trying to get listed on a larger exchange. Injective is also very much built by an ever-growing community, which will always support community needs and desires. This won’t be the first new use case that will pop up for Injective, and it certainly won’t be the last.”

I guess with this you get to understand that Injective is not just for Defi but for all financial sectors and many more the blockchain can offer