Eric Chen of Injective Labs On The 5 Things That Can Be Done To Improve and Reform The Cryptocurrency Industry

Prioritize education and awareness-building: Not to sound repetitive, but one of the biggest barriers to entry for many users is a lack of understanding and education around cryptocurrency and blockchain technology. We need to create more accessible and user-friendly educational resources that focus more on the use cases and the “why” of blockchain vs. only focusing in on the tech itself.

As part of my series about the “5 Things That Can Be Done To Improve and Reform The Cryptocurrency Industry”, I had the pleasure of interviewing Eric Chen.

Eric Chen is the co-founder and CEO of Injective Labs. Eric has worked within the crypto industry for over six years with his latest project Injective, garnering interest from leading professionals across hedge funds, venture capitals and blockchain projects. Injective is incubated by Binance and is backed by prominent investors such as Pantera Capital and Mark Cuban.

Injective is the first sector-specific blockchain built specifically for finance.

Thank you so much for doing this with us! Our readers would love to “get to know you” a bit more. Can you tell us a bit about your “backstory”?

My journey into the world of crypto began back in 2017. I became really intrigued by the potential of blockchain technology and sought out early Ethereum builders to gain deeper insights. As an undergrad, I studied cryptography while simultaneously gaining experience in finance through my work at a trading firm. With my unique background, I was able to blend together learnings across both Web3 and finance, enabling me to channel that knowledge into projects that I contribute to today.

Can you tell us the story of how you got first involved in blockchain and the cryptocurrency industry?

When I was studying at NYU, I got into mining ETH and quickly realized the immense scalability and energy challenges associated with the process. The energy consumption required to secure Ethereum even back then when it was relatively small was staggering enough for me to cause a dorm-wide blackout.

Though the incident led me to face NYU’s disciplinary board, it also inspired the first thoughts that would ultimately lead to the birth of Injective. The mission was now to create a truly scalable network that would democratize financial access for all.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

While I firmly believe that success is a collective effort in the spirit of blockchain and decentralization, there is no denying that my co-founder, Albert Chon, played a crucial role in getting Injective Labs to where it is today.

Both Albert and I were traveling in 2018, when we heard that there was an opening for Binance’s first-ever incubation program. Without hesitation, both of us canceled the rest of our trip to put our heads down and apply to the program. That decision paid off, as we were accepted to the program and started building the first iterations of what we know as Injective today.

Can you share a story of a time when things went south for you? What kept you going and helped you to overcome those times?

One particular experience that comes to mind is when we initially started building one of the first iterations of Injective. We explored building some of the infrastructure on top of Ethereum, but we quickly ran into a number of challenges, including high fees, slow speeds, and scalability issues.

One of the demos that we showcased during this time period did not function properly, which was a major setback for us in our early days. It would have been easy to give up and move on to something else, but we saw this as an opportunity to learn and grow.

Instead of dwelling on the failure, we used it as motivation to create an entirely new infrastructure stack optimized for finance and we were ultimately able to turn this setback into a catalyst for our current success.

In your experience, what are the top strategies that blockchain companies should consider to have a stronger competitive edge?

I have found that staying true to your vision and focusing on solving real-world problems is key to gaining a competitive edge in the Web3 space.

While that may seem simplistic, in such a new industry, it can be tempting to get caught up in the latest trends and buzzwords to stay relevant and “ahead of the curve”. But it’s important to remain grounded and focused on your core mission.

At Injective Labs, we prioritize building solutions that address genuine pain points in the market and provide tangible value to the larger community. Another important strategy is to create collaborations and partnerships that can also help strengthen a company’s competitive edge. A lot of solutions have already been built by other companies and by working with other industry players and leveraging each other’s strengths, we can collectively push the boundaries of what is possible in the blockchain space.

What are the 3 things that most excite you about the blockchain industry in general? Why?

1. The innovation and creativity in the sector. The blockchain industry is still in its early stages, and there is so much potential for new and unique ideas to emerge. I am constantly amazed by the innovation of builders and developers who are pushing the boundaries of what is possible with blockchain technology. It’s an exciting time to be a part of this industry and witness the rapid pace of innovation.
2. The democratization of access and ownership. One of the most powerful aspects of blockchain technology is its ability to provide access and ownership to previously centralized systems. Whether it’s financial systems, digital assets, or other areas, blockchain technology can help break down barriers and provide greater inclusivity and transparency. This has the potential to create a more equitable and accessible world.
3. The potential for blockchain to create a more unified global economy. Blockchain technology has the potential to break down traditional barriers and borders, allowing for a more interconnected and unified global economy. By providing a decentralized infrastructure for transactions and exchanges, blockchain technology can help promote greater international cooperation and economic growth.

What are the 3 things that worry you about the blockchain industry? Why?

1. The lack of user education and awareness. While there are many exciting developments happening, there is still a significant amount of confusion and misinformation surrounding blockchain technology. As a result, many users may be hesitant to adopt blockchain-based solutions due to a lack of understanding. It’s important for us as an industry to prioritize education and awareness-building to ensure that users have the necessary knowledge and tools to fully participate in the blockchain ecosystem.
2. The potential for security breaches and hacks. As with any digital technology, blockchain-based systems are vulnerable to security threats and attacks. While blockchain technology is designed to be secure, there are still potential vulnerabilities that could be exploited by bad actors. It’s important for companies and developers to prioritize security in their blockchain-based solutions to ensure that user data and assets are protected.
3. The regulatory landscape. While blockchain technology has the potential to disrupt many industries and create new opportunities for growth and innovation, it is still a relatively new and untested technology from a regulatory perspective. There is still significant uncertainty around how blockchain-based solutions will be regulated and how they will fit within existing legal frameworks. This uncertainty could potentially slow down adoption and innovation in the industry, and it’s important for us as an industry to work collaboratively with regulators to ensure that blockchain-based solutions are able to thrive while still maintaining regulatory compliance.

Ok, thank you for all of that. Here is the main question of our interview. Can you please share “5 Things That Can Be Done To Improve and Reform The Cryptocurrency Industry”? If you can please share a story or example for each.

1. Prioritize education and awareness-building: Not to sound repetitive, but one of the biggest barriers to entry for many users is a lack of understanding and education around cryptocurrency and blockchain technology. We need to create more accessible and user-friendly educational resources that focus more on the use cases and the “why” of blockchain vs. only focusing in on the tech itself.
2. Improve onboarding processes: Another key challenge for many users is the process of onboarding onto cryptocurrency platforms. We need to make it easier and more seamless for users to sign up and start using these platforms. The concept of a non-custodial wallet is familiar to crypto natives, but might not be as intuitive for an average user. Small fixes to help onboard users can definitely help onboard mass users to blockchain.
3. Develop white-labeled backend services: Many blockchain startups and crypto projects are working on similar underlying infrastructure, such as wallets, exchange services, and payment gateways. By creating white-labeled backend services that can be shared across multiple projects, we can reduce redundancy and help to streamline development efforts. This can lead to faster innovation, greater efficiency, and ultimately more robust and secure products for users.
4. Focus on interoperability: We need to work towards creating more seamless connections between different systems, enabling users to transfer value and data across multiple networks without having to worry about compatibility issues or technical challenges.
5. Institutional Gateways: Creating new access points for institutions and traditional finance organizations can further help to bridge the gap that currently exists between TradFi and Web3

How have you used your success to bring goodness to the world? Can you share a story?

As a startup in a rapidly evolving industry, we understand the importance of sharing knowledge and expertise to help others grow and succeed.

We offer mentorship and support to budding developers and new protocols within the industry. Personally spending time with new builders, providing guidance and sharing insights that can help them build better products and services is how we continue to give back. For example, we helped to incubate a protocol called “Burnt”, which famously burned a Banksy and minted it as an NFT. We want to continue helping the best builders enter the space in order to bring the entire industry to new heights.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

I would say one of my favorite quotes is from Steve Jobs who said, “Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking”.

This quote served as a north star for me over the years in Web3, as we try to go against common forms of thinking or dogma in order to bring about meaningful change in the world.

How can our readers further follow your work online?

To keep up with all things related to Injective, follow @Injective_ on Twitter and visit www.injective.com for more.

Thank you so much for this. This was very enlightening!