Hard Forking Traditional Finance – Injective Protocol Fundamental Analysis

Trading on the blockchain presents several advantages over traditional stock trading in the realm of traditional finance that include the following principles that we have all come to understand in our investment journey:

Accessibility and Inclusivity:

Traditional finance often imposes barriers to entry, requiring significant capital and limiting access to financial markets. In contrast, blockchain-based trading platforms are typically open to anyone with an internet connection, fostering inclusivity and allowing a broader range of individuals to participate in the financial markets.

Decentralization and Transparency:

Blockchain operates on a decentralized ledger, ensuring transparency and reducing the risk of fraud or manipulation. Traditional finance relies on centralized entities, such as banks and clearinghouses, introducing a higher level of opacity and potential for conflicts of interest.

Reduced Intermediaries and Lower Costs:

Traditional stock trading involves various intermediaries, including brokers, clearinghouses, and depositories, each charging fees for their services. Blockchain-based trading platforms eliminate or significantly reduce the need for many of these intermediaries, resulting in lower transaction costs for traders.

Real-time Settlement:

In traditional finance, settling trades can take days, leading to delayed access to funds and increased counterparty risk. Blockchain transactions settle in real-time or within a short timeframe, allowing traders quicker access to their assets and reducing the risk associated with prolonged settlement periods.

Tokenization of Assets:

Blockchain facilitates tokenizing a wide range of assets, including real estate, commodities, and other traditionally illiquid assets. This enables fractional ownership and opens up investment opportunities that may be challenging to access through traditional financial instruments.

24/7 Market Access:

Traditional stock markets have specific trading hours, limiting when investors can buy or sell assets. Blockchain-based markets operate 24/7, providing continuous access to trading opportunities and accommodating global participants in different time zones.

Immutable Smart Contracts:

Smart contracts on the blockchain are self-executing contracts with the terms of the agreement directly written into code. Once deployed, they are immutable and tamper-resistant, reducing the risk of contractual disputes or changes without the consent of all involved parties.

Global Reach and Cross-Border Transactions:

Blockchain transcends geographical boundaries, enabling seamless cross-border transactions without intermediaries like currency exchanges. This global reach enhances liquidity and expands the scope of investment opportunities for traders.

In summary, blockchain-based trading offers a more inclusive, transparent, and efficient alternative to traditional finance. The elimination of intermediaries, real-time settlement, and the ability to tokenize various assets contribute to the growing appeal of blockchain in the financial markets.

However, many challenges remain for the blockchain to replace traditional financial instruments. While the team and investors at CCI have long had their eye on Injective protocol since seed sales in 2021, it has finally broken out of the pack and emerged as a prime contender in the DeFi and Layer-1 narrative. 

This fundamental analysis will briefly touch on what Injective protocol is, what sets it apart from the numerous competitors in the DEX and L1 narratives, explore hidden and arguably more durable narratives, and the implications of Injective Protocol as a potential vehicle to onboard institutional liquidity into the Web3 world. It should be noted that while the current FA is adequate in explaining the importance of DEX at a high level, the accumulation of knowledge from previous FA’s is pivotal in obtaining an advanced understanding of Injective Protocol.

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