Blockchain 101: Trading advantages of Decentralized Exchange (DEX)

Will decentralized exchanges (DEXs) destroy centralized exchanges (CEXs)? Where does Injective Protocol and INJ fit into all this? Let's explore together!

Timestamps

0:00 - Intro
0:16 - What are decentralized exchanges?
1:10 - What does it mean for users?
2:07 - What are derivatives?
3:59 - Crypto Exchanges
4:43 - Advantages of Decentralized Derivatives Trading
7:00 - What does Injective bring to the table?

Decentralized Exchanges (DEXs)

A decentralized exchange (DEX) is a cryptocurrency exchange that operates in a decentralized manner without any form of central authority. DEXs do not require a third party to store your funds and enable you to retain control over your private keys at all times. Examples of DEXs: Injective Protocol, Binance DEX, Uniswap.

Centralized Exchange (CEX)

Centralized cryptocurrency exchanges are online platforms used to trade cryptocurrencies. Since they are completely centralized, they act as a custodian over your funds and control your private keys.

What are Derivatives?

Derivatives are designed to help traders hedge trading positions and use leverage for speculation. The value of a derivative is derived from fluctuations in the price of the underlying asset. Derivatives have been around for centuries and were first thought to have been used in the farming industry, where one party to a contract agrees to sell goods or livestock to a counter-party who agrees to buy those goods or livestock at a specific price on a specific date. This would aid farmers and sellers to both properly manage risk and hedge against unfortunate outcomes in the future.

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About Injective Protocol

Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective Protocol enables fully decentralized trading without any restrictions, allowing individuals to trade on any derivative market of their choosing. Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, one of the most renowned venture capital firms in the world, and the leading cryptocurrency exchange, Binance.

[injective_]

Thanks for tuning in everyone! Please remember to smash that like button and subscribe for more exclusive content ⚡

[Levi-cxto]

Thanks for the information INJ Team. Keep up the good work and looking forward to the next video.

[sadistical]

Love me some injective. I'd suggest getting a better mic boys, there's some audio distortion!

[gbiz]

Well done Injective Protocol, well explained 🙌🏻🙌🏻💎

[Swag]

Cant wait for you to luanch on to mainnet! As soon you go live im comming over! Big beliver inn you guys and the project.
Keep up the good work!

[alexpearson]

This was great. Love the explanation of derivatives. Good work y’all!

[PinkSummer]

Great simple recap of CEX vs DEX and derivatives. Looking forward to the mainnet launch. Hard to hype to derivatives traders right now since they'd find a testnet instead of a live platform, lol! Safety/security first then seamless functionality. We're behind you INJ team!!!

[jacob-jandevries]

INJ
🚀🚀🚀
Great team.
Chen the man!
🔥🔥🔥
Keep up the good work.
Greets from Holland

[wilko]

very good to understand the thought process of the project development - thx

[idlegram]

With how Binance exchange is acting up lately it’s a no brainer that this project will be big. INJ to the moon!

[KrooNfps]

Would you be considering airdrops for those who helped test the testnet just like uni-swap?