If you’re familiar with the blockchain space, you may have heard of the Lisk blockchain application platform. However, “what is Lisk exactly?” is a question you might have. To put it simply, Lisk is an ecosystem of interoperable blockchain applications developed with a mission of “everyone benefits from the blockchain.”
As for how Lisk works? Read on to find out!
What is Lisk?
Before we jump into how Lisk works, let’s first understand “what is Lisk?”, shall we?
Lisk intends to allow developers to deploy side chains onto their network in the future, allowing their blockchain applications to scale while remaining connected to the larger Lisk ecosystem. Because these blockchains are Lisk-compatible, developers can take advantage of resources such as the project’s software development kit, coding libraries, and the native cryptocurrency LSK.
Who Created Lisk: The Team Behind the Project
Now that you know ‘what is Lisk,’ let’s get into a brief history of the Project. Lisk was founded in May 2016 by Max Kordek and Oliver Beddows. The platform arose from a fork of Crypti. The founders held an initial coin offering (ICO) for Lisk’s cryptocurrency, LSK, in February 2016. They raised 14,000 BTC through an auction of 85% of Lisk’s token supply. It was the second most successful cryptocurrency crowd-funding project at that time.
The remaining 15% of LSK coins were distributed to key stakeholders and developers. Lisk’s main network went live on May 24, 2016, and the LSK tokens became available for trading on major stock exchanges. On February 20, 2018, Lisk was relaunched and rebranded with a new logo and website.
How does Lisk Work?
Lisk Core is the primary software implementation for the Lisk network. It enforces the protocol’s rules, ensuring that the computers that use it are in sync and running smoothly. Developers create applications in sidechains linked to the Lisk mainchain. The Lisk software development kit (SDK) is used to create Lisk Core-compatible decentralized applications (DApps).
To secure the blockchain, Lisk employs the Delegated Proof-of-Stake (DPoS) consensus algorithm. DPoS is regarded as a more efficient and democratic variant of the widely used Proof-of-Stake (PoS) mechanism. It enables validators to outsource block validation via a voting system. Lisk has a decentralized network of nodes, with each node capable of connecting to the network or acting as a validator. The Lisk network currently has at least 600 connected nodes all over the world.
Now that the basics of Lisk’s workings are out of the way, let’s get to the next significant question: how does the Lisk token work?
How Does the Lisk Token Work?
LSK is the Lisk network’s native utility token. LSK is a cryptocurrency that can be used to conduct transactions on the Lisk blockchain network. Holders of LSK can also use the token to secure the Lisk network via the Delegated Proof-of-Stake (DPoS) consensus mechanism. Users can stake their LSK tokens in the Lisk desktop wallet to vote or to delegate. The tokens will be locked for as long as the user holds the role.
On several major exchanges, LSK can also be traded for other cryptocurrencies. With time, it is expected that a user will also need to use the LSK token to register their blockchain applications.
Lisk: Rebranding and Relaunching
Lisk’s entire team has been dedicated to developing a leading blockchain application platform since its inception in 2016. On February 20, 2018, the Lisk team made the decision to rebrand the platform, recognizing the need for a distinct identity and positioning. With the new update came a brand new and interactive Lisk Desktop or Web App. It included the Lisk Wallet and Lisk Explorer features. The Lisk Software Development Kit (SDK) was also upgraded as part of the relaunch.
Most blockchain projects have the goal of mass adoption and interoperability with other networks. However, the problem is that many blockchain networks have their own programming languages, so a developer has to learn multiple languages to achieve said interoperability with their DApps. For instance, developers have to use Solidity for Ethereum-compatibility, and Rust for interoperability with Solana.
Lisk’s Special Features
The following are some of Lisk’s distinct features:
- The block time of Lisk is 10 seconds.
- Lisk’s round time is approximately 17 minutes.
- LSK does not have a fixed supply of tokens. The supply is increased annually by rewarding users with LSK tokens.
- Ethereum’s execution environment, known as the Ethereum Virtual Machine (EVM), is secured using a PoW-PoS hybrid. In contrast, the Lisk Virtual Machine employs the Delegated Proof-of-Stake (DPoS) mechanism.
- Lisk can operate in a fairly decentralized manner because the blockchain is distributed among 100+ validators.
Sidechains are specialized ledger systems that are linked to the primary network. The Lisk platform is intended to enable developers to create scalable applications on sidechains with greater autonomy and flexibility. Lisk not only provides superior scalability but also ensures that these sidechains are never constrained. The Lisk team collaborates on the mainchain, and all developers have complete access to the sidechains. As a result, even if a bug is discovered on another system, it will not affect the primary channel.
Additionally, developers will be able to deploy their own sidechains on Lisk in order to scale their blockchain applications and provide lower transaction fees and higher TPS.
Lisk is Unique, But How Exactly?
There are many factors making the Lisk platform unique. Namely, LSK is based on the Delegated Proof-of-Stake consensus protocol (DPoS). Holders of LSK can essentially vote for the people they want to validate blocks on the blockchain.
Following the launch of the Lisk Platform, developers will be able to use the Lisk SDK to build applications on the sidechains rather than smart contracts. This SDK contains the following components:
- Lisk Framework: It facilitates interactions between the modules of the DApps.
- Lisk Elements: It is a set of coding libraries.
- Lisk Commander: It is a tool that allows users to interact with the blockchain.
- Front-end: It covers the user interface. They are practically public.
- Back-end: Customizable codes available for developers to create DApps without any restrictions.
Lisk Future Price Prediction
Lisk is trading around $0.92 as of late September, 2022, with a market cap of almost $119 million. According to analysts, LSK will continue to grow, and the crypto is expected to trade at a minimum price of $2.45 in November. Further, the price of LSK is expected to rise to $2.68 by the end of the year. By 2026, the maximum price level could be $3.99.
Lisk Roadmap and Development: An Overview
Lisk’s ultimate goal is to host a large number of DApps. Lisk collaborated with Microsoft in 2016, and this gave them the opportunity to demonstrate their services as a blockchain through Azure, as well as gain further industrial recognition. Lisk’s roadmap is divided into Quartz, Amber, Ruby, Emerald, Sapphire, and Diamond. The current phase is called Sapphire.
In the Diamond phase, with its Sidechain Development Kit, Lisk expects a flood of developers. The kit will make it easy to create DApps, customize them, and distribute them on a sidechain. Developers will be able to create their own tokens and launch ICOs on the network.
New Lisk bridges will be brought out in the final version of the Lisk blockchain application platform, which will eventually offer interoperability with other blockchain ecosystems. Ethereum, Polkadot, Cardano, and Cosmos are among the current candidates.
What are Lisk’s Main Challenges?
The main problem that Lisk has to tackle is the clash with Ethereum on every level; so Lisk has to upgrade itself to survive the highly competitive crypto world continuously. Interestingly, since Lisk uses a different mechanism than the Ethereum Virtual Machine, it can be said that Lisk a potential Ethereum Killer.
Lisk Blockchain Services
The Lisk blockchain services are as follows:
- Identity – Instant single sign-on (SSO) for websites requiring registration
- Decentralized hosting – Stores media in a decentralized, encrypted cloud on the network
- Smart contract execution – Allows trustless escrow services and eliminates counterparty risk
- Oracles – A way to get customizable real-time data or the result of real-life events
Lisk Decentralized App Directory
Within the Lisk client, you can search for any DApp in the ecosystem. This is similar to the way you search in Google play store or any other app store. The platform’s blockchain applications must all be registered on the main chain. This registration establishes a link between the Lisk mainchain and the sidechains, enabling the application directory to locate all blockchain applications and services.
Lisk has already powered a number of projects; these include Kalipo, a platform for decentralized autonomous organizations (DAOs), doEdu, an educational platform, Colecti, a Lisk-based NFT marketplace, and many others. As time goes on, Lisk’s functionalities are only expected to grow in efficiency and number.
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