Injective: the promising crypto project for building finance solutions

The Injective Project is a solution for building decentralized finance solutions, specifically decentralized apps focused on this area of expertise. It's not just your typical blockchain platform. It's a complete ecosystem that allows developers to create financial solutions, and clients to access them.

The project's main feature is its capability to create financial instruments that aren't just technologically advanced and efficient, but also user-friendly, practical, and flexible. It can offer a plethora of new advantages—from more democratic access and formerly exclusive financial markets to new levels of speed and security.

There is a lot to uncover here, so let's dive right in.

What is Injective?

Injective was created in 2020, making it a rather fresh platform. It was intended from the start as a totally decentralized platform that provides access to countless trading and financial solutions. Its approach to DeFi is particularly innovative, which has been noted as one of this platform's key advantages.

It's more commonly perceived now as a place for developing decentralized solutions, for which it has a sound and effective model. It uses Ethereum-derived smart contracts very extensively. As such, the platform is closely aligned and intertwined with Ethereum, but it's not based entirely on it. It's an independent platform with its own token, governing consensus, and infrastructure.

Besides being an excellent, user-friendly place for creating applications, it also hosts each and every solution created here. As such, any user can gain access to innovative, promising financial instruments meant for any sort of uses — from exclusive trading and digital banking to the most secure wallets.

The possibilities are immense, and there are special provisions that make this blockchain even better at its job.

Cosmos-SDK

The Cosmos Software Development Kit is a model that enables the creation of decentralized solutions on Injective. It uses Ethereum-derived smart contracts with some modifications, which already means that Injective is very tightly connected to ETH. However, the interoperability is further improved with the IBC protocol.

The Inter-Blockchain Communication protocol is a mechanism that enables Injective to communicate more extensively with other blockchains. This improves interoperability, making it possible for Injective to trade tokens and other data with other platforms. This translates also into functional advantages, as INJ-built decentralized solutions are capable of maintaining long-standing connections with multiple blockchains.

The other crucial mechanism in this Cosmos model is the Modular Framework, adopted more and more frequently by the ever-growing number of developer-oriented platforms. Essentially, each project can create its own sub-blockchain, which would much better fit the unique, personal needs and preferences of both individual developers and their solutions.

Governing

Governing on Injective is attained through a special class of users called validators. They are the ones operating nodes and approving transactions to be added as new blocks.

Validators are users that possess the infrastructure capable of maintaining nodes, as well as a level of recognition among the community. It's important to have this trust because of the unique way governing works on this platform. Validators, in short, are the ones that make this blockchain tick, as well as the receivers of most rewards.

Delegators are another crucial part of the community. While validators are the driving force behind the nodes and blockchain at large, delegators are the foundation of all these processes. Every INJ holder can decide to entrust their hard-won tokens to various validators. They can choose which validator to endorse based on a myriad of parameters (all the necessary data is in open access).

Both delegators and validators can vote on what's going to happen with the project next, but it's the latter who typically propose new 'legislation' (being the ones with the most clout).

Staking

Staking and governance are very much connected on the Injective platform. To stake, a regular user needs to hold a certain amount of INJ tokens. It can be divided into several steps:

1. The creation of an INJ wallet right on Injective.
2. The acquisition of INJ. It can be bought in one exchange or the other or converted from other cryptocurrencies, such as ETH, through established inter-chain bridges. Either way, to start staking, you need some INJ.
3. Enter Injective Hub and research your validator options.
4. Delegate your INJ to a validator and wait for your rewards to come.

The validator will use this money to support their nodes and earn rewards through a classic proof-of-stake consensus mechanism. They receive most of these rewards, but their delegators also receive a share proportional to how much they decide to delegate to the said validator.

Injective vs. Ethereum

As for the development process that takes place on Injective, there are several advantages compared to baseline Ethereum.

• Scalability. The other great advantage of the Cosmos-SDK framework is its increased scalability. It's faster and less expensive, making it an excellent way to expand your crypto project. It's essentially a layer 2 solution, although not without a unique infrastructure that helps make this platform independent.
• Customizability. Injective allows users to create custom sub-blockchains that fit their unique needs. It's not a thing on Ethereum, but it can absolutely make the development process more flexible and user-friendly.
• Interoperability. Unlike Ethereum, Injective can boast a very high level of communication with other platforms. It doesn't just mean multi-chain projects, but also that you can very easily transfer data from these other blockchains to your INJ-built project. This is incredible.

The SDK interface itself is also a product of much testing and trial. It is currently one of the better ways to create decentralized solutions.

Conclusion

Injective isn't just 'Ethereum but better'. Ethereum can be used in a variety of ways, and there isn't really a single direction or idea on that platform. With Injective, you know you'll encounter an ecosystem that favors decentralized finance solutions very heavily. It's both a great development framework and a library of established INJ-based solutions for trading, banking, personal finance, and a lot more.

So, if decentralized finance is what you're very much interested in, then you might like Injective.