TechCrunch reports: A new force in encrypted assets, the Injective Protocol hatched by Binance has launched a testnet
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Original link:https://techcrunch.com/
Decentralized exchange protocols that allow cryptocurrency traders and investors to trade across chains have been around for a long time. This week, the Injective Protocol, a decentralized exchange protocol, announced its major development, the launch of a testnet. It is reported that Injective has received support from Binance, one of the largest centralized exchanges in the world.
Injective Protocol is one of the first general-purpose “DeFi” (decentralized finance) protocols for cross-chain derivatives trading, and the launch of its testnet is a major milestone. Injective's main competitors (centralized and decentralized exchanges) include CME Group, BitMEX, LedgerX, and OKEx, among others.
In addition to being incubated by Binance Labs, Injective Protocol has also received a US$3 million investment from many well-known blockchain investment institutions, such as Pantera, one of the world's top cryptocurrency venture capital firms, and Hashed, South Korea's largest blockchain fund. Previously, Pantera has successfully invested in star projects such as Kik, Bitstamp and Blockfolio.
Pantera Capital partner Paul Veradittakit said: "Trading on Injective's Solstice test network feels like being on a head-to-head centralized exchange, but it is based on a completely decentralized infrastructure. With a block time of 1 second , instant finality and full EVM support, I believe Injective will lead the next wave of decentralized derivatives trading.”
Injective's core team originally came from Stanford University and has been building and testing its products since 2018, while cooperating with several large funds, market makers and institutional traders. Before founding Injective, its CEO and co-founder Eric Chen worked at a hedge fund and worked on cryptography at a blockchain fund.
Injective has been working on its mainnet and has already announced partnerships with top blockchain companies such as Elrond, Ramp DeFi, Findora, and Frontier. Its layer-2 decentralized exchange protocol allows traders to trade across Ethereum, Cosmos, and other networks in cross-chain derivatives transactions using Tendermint-based proof-of-stake.
In recent years, there have been many operational risk incidents on centralized exchanges, such as front-running, exchange fraud, and hacking. At the same time, existing DEXs still face problems such as high transaction fees, low liquidity, complicated UI/UX operations, and slow speed. Trading volume on decentralized exchanges has reportedly grown by 70% in mid-2020, hitting an all-time high of nearly $1.52 billion. Obviously, the public's interest in DEX is gradually increasing.
Injective's solution combines the advantages of a decentralized exchange platform: preventing early transactions, fraud, and hacker attacks, and has the advantages of a centralized exchange such as high speed, low transaction fees, and 0 gas fees. In the future, developers can also create their own derivatives markets for transactions.
With Bitcoin reaching an all-time high of $19,000, the blockchain and encryption world is once again ushering in a new round of rapid development.
Original link:
Original link:https://techcrunch.com/
