Recently I heard about 'Injective Protocol' which claims to be perfectly decentralized! So I did a little bit of research by myself about it and this post is all about that!
I'll try to avoid technical terms and keep this article as simple as possible.
So basically, I'm going to explain the decentralized system that Injective Protocol is offering. But before that, you need to know what a decentralized exchange is!
Concept of Decentralized Exchange (DEX)
DEX or decentralized exchange allows people to trade or place an order without any intermediatory intitution controlling user fund.
So simply it can be said that, a decentralized exchange does not rely on any third parties to hold the funds of a user. Instead, trade happens directly from user to user (peer-to-peer) through an automated process.
There are a lots of facility a decentralized exchange can provide. The main advantages are security, protected privacy, more increased anonymity than centralized system and also democratic administration.
Generally, there are four fundamental functions of any exchange: capital deposits, order books, order matching and asset exchange. Now, for a total decentralized exchange, each functions have to be decentralized!
But most DEX services doesn't have that.
Decentralized System of Injective Protocol
Injective Protocol is truly decentralized. Which ensures more security and privacy protection. Thus it provides the full potential of decentralized exchanges.
The Injective Protocol is only DEX protocol that secures the trades from front-running and provides a secured trading experience.
Injective Protocol is the first layer-2 DEX protocol which can provide the most highly secured decentralized border less finance.
However the main important thing here is that it decentralizes every element of an exchange and made it open source. Most of the other services doesn't offer that. Basically, they are trying to offer more secured and a perfect decentralized system.
Conclusion
Decentralized exchange is still a new thing and passing it's early age, developing so much faster. Injective Protocol is an approch towards providing a perfectly decentralized exchange that people would likely be interested in!
I'll wait untill their main-net launches and experience their fully-fledged trading platform.
This project really interests me, if you are also interested in it and want to learn more then just visit Injective Protocol's official website. You'll know more about them.
Thank you for reading this post! :)
