What is Injective (INJ)?

Deep Dive

1. Purpose and use

Injective is designed to make it easier to build financial applications on a blockchain. Its ecosystem can support decentralized exchanges, derivatives markets, lending, prediction markets, and applications involving tokenized assets. (CoinMarketCap)

2. Technology and architecture

Injective is a layer one blockchain: an independent network that processes and settles its own transactions. It uses proof of stake, a system in which validators stake tokens to help secure the network and confirm transactions.

A distinctive feature is its onchain order book, which records and matches trading orders directly on the blockchain. Developers can also use built in financial modules rather than creating every trading component from scratch. (Injective)

3. What INJ does

INJ is Injective’s native token. Holders can stake it to support network security and participate in governance, where token holders vote on protocol decisions. Injective also describes an ecosystem revenue mechanism that can use INJ in buyback and burn processes, permanently removing tokens from circulation. (Injective)

Conclusion

Injective is a finance focused blockchain with onchain trading infrastructure; INJ supports its security, governance, and token mechanisms. How effectively can its built in financial tools serve the applications developers want to create?