Thailand’s largest and oldest commercial bank, Siam Commercial Bank (SCB), is joining a growing list of validators for Injective Protocol ($INJ), a multi-chain decentralized exchange protocol.
Badge of Honor
Injective Protocol will soon add an invaluable partner to its validators that secure its proof-of-stake (PoS) blockchains. The latest news with Siam Commercial Bank (SCB) helps Injective gain traction in the traditional finance worldthrough the bank’s digital technology venture arm, SCB 10X. SCB is Thailand’s oldest and largest lender, with more than $93 billion assets under its management. The participation of an established financial institution with a banking lineage adds value to the entire ecosystem.
With this partnership, it is evident that legacy finance is seeing long-term value in the blockchain industry. Disruptive technology such as the blockchain has been making waves on many fronts. Apart from revolutionizing how financial products and services can be offered to the unbanked, it has also created a very niche market in the form of Decentralized Finance (DeFi). This development fits SCB’s vision and its future plans.
Through a transformational plan, SCB identifies the need to respond to the changing environment shaped by digital technology, regulation, and consumer behavior. The partnership helps achieve that purpose by bringing innovative technology to the industry and its consumers.
The primary function of a validator is to increase the security of the network by running nodes. Validators play a vital role in the Proof of Stake (PoS) consensus mechanism. The role of a validator is to verify and confirming blockchain-based financial transactions to increase security, integrity, and transparency on the Injective blockchain network.
A Proof of Stake consensus mechanism can be subject to malicious attacks if a majority of the validators are taken over. Validators will hold certain numbers of tokens to prevent attacks. In exchange, validators will receive rewards for validating transactions.
Bitcoin and Ethereum are running on the Proof of Work (PoW) mechanism and have been widely criticized for their extensive energy use. However, Ethereum has been working on a gradual migration from PoW to PoS as it starts a series of progressive changes to Ethereum 2.0.
Finding Value in Injective Protocol
The DeFi ecosystem has been growing exponentially, and Injective Protocol is the first layer-2decentralized exchange protocol to emerge. This means participants using the Injective Protocol platform can trade without restrictions on the derivative market. Frictionless transactions open the horizon to endless possibilities. Alongside SCB, this strategic partnership solidifies more command over the evolving and expanding market.
Injective Protocol has garnered plenty of interest as it has been backed by reputable stakeholders such as Pantera Capital and Binance. Pantera is a venture capital firm focussing on projects in the blockchain. Binance, on the other hand, is the biggest crypto exchange in the world. The billionaire investor, Mark Cuban, who has been a vocal supporter of various crypto projects, had even lent his weight behind the Injective Protocol.
Cuban called out the recent GameStop and Robinhood’s sagas in a Tweet as clear examples of traditional market dysfunction and its inherent deficiencies, which can be quickly resolved by DeFi solutions such as the one offered by Injective Protocol.
Bridging the Divide
Injective continues to grow and attract interest from all around DeFi. Collaboration and partnership with strategic partners are charting new territories for the revolutionary platform. With more than $50 million locked in Equinox Staking and has forged partnerships with institutions like SCB 10X, the future role for Injective seems to be promising.
The latest collaboration with a banking institution based in Thailand is suggestive that Injective may have some prominent role in SCB’s transformational plan. Injective is opening new doors and opportunities to its community. Participation in the financial world can reach the unbanked and empower those overlooked by a rigid, cumbersome, and clunky legacy system.
About Injective Protocol
Injective Protocol is a decentralized derivative protocol. It enables decentralized and borderless trading without any restrictions. Injective is the first layer-2 decentralized exchange protocol to allow full decentralized trading on any derivative market of their choice. Injective has just finished a $10 million funding round and is backed by prominent stakeholders, including Pantera Capital and Mark Cuban.
Source : bsc.news
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