Exchange-traded funds (ETFs) are a common investment tool that track the price of an index, commodity or any other asset enabling investors to trade these assets on traditional exchanges. This term has been widely used in traditional finance and a Bitcoin ETF symbolizes a paradigm shift as it allows investors

In 2008, a pseudonymous user under the name Satoshi Nakamoto released a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” on small Internet forums . The paper outlined a novel peer-to-peer protocol that would later constitute the world’s first digital asset which promised to rewire the finance industry. The revolutionary

For a while there was no decentralized finance (DeFi) or crypto per se, but just Bitcoin. Acknowledged as the first blockchain protocol, Bitcoin allowed for the permissionless transfer of BTC without the need for any middlemen. That in itself was revolutionary, and soon inspired a Cambrian explosion of projects that

Introduction Fractional reserve banking is a system whereby banks are required to keep only a portion of the money deposited with them as reserves, that is, available for immediate withdrawals. Banks use the rest of the funds for lending new loans, paying interest on inter-bank loans and awarding existing deposits

A central part of the design of any crypto project is its token economics. Tokenomics (short for “token economics”) outline the logic of distribution and future supply of the token. Notably, tokenomics can be altered and voted upon by means of decentralized community governance. For instance, the community might decide

Introduction Until recently most projects in decentralized finance (DeFi) have focused on implementing conventional financial processes on the blockchain, whether that be lending, borrowing or saving. Projects such as Compound and Maker Protocol have for example established the logic of decentralized credits. Indeed, since credit scores are not yet available

Money is an economic unit that has taken on various forms throughout history but has generally served three main functions: store of value, unit of account, and medium of exchange. When nations established the right to issue money, a unified system of value exchange became possible using a government-issued currency.

Decentralized oracles help connect off-chain external data and APIs with sovereign blockchains. In other words, blockchain oracles provide a framework for smart contracts to access data that is not deterministic or readily available from the information contained on this chain. This data could be anything from price feed to weather

Crypto markets are known to be quite volatile. Rapid price movements can often be explained by the lack of liquidity; however, another common explanation for drastic fluctuations are flash crashes.  A flash crash is a rapid and unexpected price drop that is immediately followed by a recovery. This rapid sell-off

In traditional finance, options are a type of derivative product that allows investors to transact financial instruments such as indices at a predetermined price during a set period of time. Depending on which side of the trade the investor decides to take, there are call (buy) and put (sell) options.

Consensus Mechanisms Since the publication of the Bitcoin Whitepaper, which was the first to propose Proof-of-Work [https://blog.injective.com/what-is-proof-of-stake-pos/] as a consensus mechanism, a series of novel approaches have been introduced. These new consensus mechanisms include Proof-of-Stake (PoS) [https://blog.injectiveprotocol.com/what-is-proof-of-stake-pos/] and Delegated Proof-of-Stake (DPoS) becoming

Introduction Hearing crypto enthusiasts speak in an entirely different language can make the industry feel like a walled garden. Originating from chat rooms with a small group of supporters in 2010, crypto has grown into a strong community with memes and jargon that make up an integral part of the

Fears of rising inflation have often dominated public discussions among economists. This article will explore the concept of inflation and analyze whether crypto is a good hedge against it. Inflation’s Textbook Definition In the context of macroeconomics, inflation is the general increase in the price of goods and services

The term NFT has become rather mainstream over the past few months. Short for non-fungible tokens, NFTs are unique digital assets that have presented a gateway for a new wave of crypto adopters during the current cycle. The innovative property that NFTs brought to the digital space is the ability

Throughout history, gold was used in society to preserve wealth and as such was viewed as a "store of value". More recently, gold has been seen as a great hedge [https://blog.injectiveprotocol.com/risk-management/]against inflation, providing traders and investors with an alternative investment vehicle. However, as a base

Welcome to Injective’s What is Staking guide. Here, you will be able to find an introduction to a number of important topics related to staking. Whether you are new to crypto or an experienced trader, this will cover all of the essentials. Overview Staking can be perceived as a

Welcome to Injective’s Proof of Stake (PoS) tutorial. Here you will find everything you need to know about PoS, including a breakdown of the staking selection process. Whether you are new to crypto or are an experienced crypto trader, it is important to possess a firm understanding of consensus

Proof of Work (PoW) is a consensus mechanism that prevents the same funds from being sent to two recipients simultaneously, a scenario known as double-spending. Many major blockchains use PoW as a foundation for reaching consensus among users or machines coordinating in a distributed setting. Though PoW technology was conceived

Layer-1 is the term that is used to describe the underlying main blockchain network. For instance, Ethereum can be thought of as a layer-1 protocol since it acts as the underlying blockchain system on top of which other DApps can be deployed. Layer-2 (L2), however, refers to a secondary framework

Welcome to Injective’s guide on how to create a MetaMask account. In this tutorial, you will learn the process step by step so that you can start trading or even yield farming [https://blog.injectiveprotocol.com/learn/what-are-derivatives/]. What is MetaMask? MetaMask is a browser plugin that serves as

In this quick and easy guide, we will break down the key highlights and differences between centralized exchanges (CEXs) and decentralized  exchanges (DEXs). 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

A derivative is a financial contract whose value depends on changes in the value of an underlying asset. 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

Yield farming is a process that enables cryptocurrency holders to lock up their funds in return for yield. Yield on a farm in the traditional sense consists of the amount of crop that is harvested. In decentralized finance (DeFi), yield farming refers to the return on assets generated by both

Various trading strategies are used by traders in order to earn profit with capital. Having a trading strategy will allow you to both plan all of your trading activities and answer the questions you need to ask before making a decision. For example, what underlying asset should you trade? When