Trading as a public utility of Injective Protocol
How injective protocol works as utility trading
The injective chain is based on the Cosmos zone and is a decentralized protocol built on Layer-2, providing a high-speed Ethereum decentralized trading experience. It will use the Cosmos IBC protocol to achieve cross-chain transactions, VDF to simulate real-time through Proof of Elapsed Time, and standardize order sequencing to eliminate early tradings. Also, the Injective chain supports token staking and provides technical support for creating more services such as staking in the future.
As my knowledge started about 300 years ago during the industrial age, people were working endlessly to increase productivity and efficiency on machines to manufacture from steam engines to automobiles; the keywords were mass production, automation with machines, and efficiency optimization for maximized profitability.
According to everything has changed, and the passing of time seems to be even faster as we witnessed the iteration of technologies. Humans shift their attention away from basic productions and machines back to humans themselves; the internet connects integrates humans, information, and machines.
We know things and people get connected and integrated into an "unseen network," the characteristics of blockchain decentralization or however you call it, have become extremely incentivizing for people to act and innovate upon. Specifically, works have been done on all layers of the internet from, again, data productions, storage, to applications, and of course along with all the innovations come with innovative business models and even "token economies."
Status of exchanges
We can in traditional finance or internet finance, "exchange" play a fundamentally crucial role. The essence of the commodity economy is the exchange economy, and in the commodity economy, productions and consumptions are matched through market exchanges. When a proper equilibrium is achieved for supply and demand, the marginal substitutional rate between any two commodities will be the same for any consumer, and the exchange of values is optimized.
The platform has evolved from the physical markets to the electronic stock trading systems and exchanges and more. Digitalization and "internalization" are the new focuses. In the past decade, since Satoshi Nakamoto invented Bitcoin, the exchange medium and platform have again shifted from centralization to decentralization.
After the ICO hypes in 2017, the tokenization of assets has grown popular and now towards better maturity. At the same time, various digital asset trading and exchange platforms also utilize blockchain technology to achieve decentralization, hinting a promising future for internet finance and exchange as a function itself.
The progress and current status of traditional exchanges
An exchange is a trading platform with diverse products, which provides price discovery and liquidity for traded products. Technological advancements have facilitated and effected also the business model and infrastructure of the exchanges. Not many people stand in offline market places and shout out the prices of their goods to attract buyers nowadays, but try to get their goods sold through electronic trading systems.
In terms of the business model, most exchanges in Europe and the United States have gone from membership-based to form for-profit companies.
As the hub of financial activities, the development of exchanges is heavily affected by regulatory policies. However, as technology develops, regulations loosen, and business competitions carry on, Alternative Trading System has emerged since 1990 in the US adding flexibility and diversity to the financial world.
The development of exchanges based on blockchain technology
Centralized exchanges, as the name suggests, means that the assets deposited by the users are stored in the hands of the exchange owners, and matching of trades and even prices of products are subject to centralized controls operated on centralized servers. In other words, we, as users, do everything on the platform based on our trust in the team and institution running it.
In comparison, the essence of decentralized exchanges is to allow users' assets to be under decentralized custody, with every transaction record stored on the blockchain giving transparency and traceability. Simply put, this whole decentralization is meant to prevent malicious human behaviors and to facilitate users to trust in codes and technology instead of other human beings. Let's probe further in details:
Centralized Exchange
When using a centralized trading platform for the first time, you need to complete the registration required by the centralized exchange and KYC. Upon different levels of task completion, you will have permission to deposit, withdraw, trade, and more.
Deposit
deposit a certain amount of assets from other exchanges or your wallet to the newly registered centralized exchange. It should be noted that the address to receive the deposit is assigned to you by the centralized exchange, and thus you do not have the private key to this address.
Withdraw
to withdraw assets away from the exchange, you are subject to centralized risk control conducted by the exchange persons as you do not have control of the address. It is usually the case that you will need to complete the highest level of KYC. Further, the release of your assets is completely subjected to the permission and execution of the exchange staff.
Decentralized Exchange
With the advancement of blockchain technology and the emergence of more public blockchains, there are now a variety of decentralized exchanges. DEXes are different because of the diverse public blockchains they are based on and their respective concepts and technologies. Here we only discuss the decentralized exchanges about the general traits.
One of the key aspects of decentralized exchanges is that the exchange accounts equate to smart contract accounts. In brief, storing assets on DEX is to store them in smart contracts which is to store them in codes, and in codes you trust. Usually, most DEXes will only ask for registration, and to deposit, withdraw, and trade.
The injective chain is based on the Cosmos zone and is a decentralized protocol built on Layer-2, providing a high-speed Ethereum decentralized trading experience. It will use the Cosmos IBC protocol to achieve cross-chain transactions, VDF to simulate real-time through Proof of Elapsed Time, and standardize order sequencing to eliminate early tradings. Also, the Injective chain supports token staking and provides technical support for creating more services such as staking in the future.
Official Website: https://injectiveprotocol.com
Bounty Link : https://bitcointalk.org/index.php?topic=5256993
Telegram: https://t.me/joininjective
Whitepaper Link: https://docsend.com/view/zdj4n2d
Github: github.com/InjectiveLabs
Twitter: https://www.twitter.com/@InjectiveLabs
Reddit: https://www.reddit.com/r/injective