Lisk is an open-source blockchain application platform and decentralized network that allows developers to create and deploy decentralized apps (DApps) in the programming language Javascript. The protocol has its native token, LSK, required to pay for essential operations and vote on proposed changes to the software's rules.
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Read on to learn everything you need to know about the Lisk platform and Lisk's token LSK.
What Is Lisk
Lisk is a blockchain application platform and a next-generation decentralized network that aims to make creating blockchain applications easy. With its software development kit, Lisk SDK, the platform allows for developing and distributing Javascript-based decentralized applications based on their own sidechain. Lisk features an easy-to-use and fully featured ecosystem.
Developers can build blockchain applications and deploy customized sidechains linked to the Lisk mainnet. Thanks to the flexibility of sidechains, developers can implement and customize their blockchain applications entirely.
According to the white paper, "Developers can quickly deploy their JavaScript apps to Lisk Hosting & Storage Nodes, gain listing in the Lisk Dapp Store, and have immediate access to Lisk Compute Nodes for execution of the code."
The Lisk blockchain has its native utility token LSK (Lisk). Users need LSK to send transactions, participate in voting processes, or accomplish other network activities.
Lisk Founders
Max Kordek and Oliver Beddows founded Lisk in 2016 in Zug, Switzerland. Max Kordek is the company president, and Oliver Beddows is the Vice President.
It's worth mentioning that the origin of Lisk goes back to 2014 when the founders were working on the project Crypti, from which Lisk was forked later.
The launch of the Lisk platform took place following an Initial Coin Offering (ICO), which took place in March 2016. An Initial supply of Lisk coins was 100 million, 85% of which (85 million LSK) was allocated to ICO participants. During the offering, Lisk raised 14.000 Bitcoins, worth about $5.6 million. At the time of ICO, the Lisk (LSK) price was around $0.076.
After crowdfunding, Kordek and Beddows co-founded the blockchain development studio Lightcurve, which focused on building Lisk developer tools and user interfaces.
How Does Lisk Work
Lisk is a decentralized network based on the Delegated-Proof-of-Stake (DPoS) consensus algorithm and run by network participants. The community elects 101 active delegates to verify and broadcast transactions to secure the Lisk network. Each account on the blockchain can register to become a delegate, and the ones with the right to generate blocks are selected through the voting process. LSK token holders lock their coins to vote. In return for producing blocks, delegates receive block rewards. Lisk has no automated reward-sharing mechanism, so they can choose to share those rewards with their voters or use tokens to create tools and apps for the Lisk system.
Delegates and those who voted for those delegates are punished if violating the network's rules. In particular, the voters' tokens are locked for a longer period, which is for extra 30 days. The funds aren't lost, but the owner can't use them for the given interval.
Therefore, Lisk recommends users only vote for reputable delegates and select more than one delegate to decrease the risks.
Lisk (LSK) Tokenomics
Lisk is an inflationary token with no maximum supply. As of January 2022, the circulating supply of Lisk tokens is over 144.8 million LSK coins. The inflation rate of the coin was set to decrease with time, with the halving of block rewards.
During the first year of its running, 5 new LSK coins were added to the supply when a new block was created. Every year, the reward was decreased by 1 LSK. In September 2020, Lisk announced the final block reward reduction from 2 LSK to 1 LSK, and to date, they stay at 1 LSK per block.
Block rewards are distributed between delegators, who will also receive transaction fees according to the transactions they produce.
At the time of the ICO, Lisk launched 100.000.000 LSK coins. As mentioned, 85% of the initial supply was sold during the crowd sale, 7.8% was allocated to the Core Team, 4% was kept for campaigns and bounties, 2% was allocated to advisors, partners, and third parties, 1% went to early supporters, and 0.2% was distributed to First Day ICO participants.
Lisk price is volatile. The coin (supply 144,818,773) reached its all-time high of $39.31 on January 7, 2018.
Lisk Products
Lisk presents various tools and products to enable developers from all backgrounds to build useful applications, eliminating the need to learn new, blockchain-specific coding languages. The main products of the protocol are Lisk Core, Lisk SDK, and Lisk Service.
Lisk Core
Lisk Core is the main blockchain application of the network. Lisk node operators use Lisk Core, which applies the rules of the protocol, ensuring that the computers run in sync and operate smoothly. Node operators need to set up Lisk Core on a server, connect it to the network they want and communicate with other participants. Nodes broadcast and receive blocks and transactions, adding new blocks to the blockchain.
Lisk SDK
The Lisk SDK (software development kit) presents a group of tools enabling developers to create different apps powered by blockchain technology in JavaScript and TypeScript. Due to its flexibility, the kit allows developers to build solutions for their envisioned use case.
Among the projects built on Lisk are DeFi marketplaces, games, data tracking platforms, and various tokens, including NFTs and stablecoins.
As of January 2022, the Lisk team is working on the protocol's interoperability with other blockchains such as Ethereum, Polkadot, etc. The upgrade is expected to take place this year with the start of the "Diamond" roadmap phase, the 6th and ultimate stage of the network's roadmap, following Sapphire. The preceding four were Quartz, Amber, Ruby, and Emerald. Lisk has followed the roadmap since its launch in 2016, and each roadmap phase has played a major role in the platform's development by adding new features and presenting improvements.
Lisk Service
Through the Lisk service web application, blockchain protocols based on Lisk and Bitcoin networks interact with each other. Lisk Desktop and Lisk Mobile users get real-time blockchain data and statistics on protocol usage.
Lisk Mainnet v3
In August 2021, Lisk announced migration to Lisk mainnet v3, with old addresses automatically moving to the upgraded version. Since its launch, it has been the biggest change for the protocol and brought about new features and significant improvements, such as higher processing speed, increased maximum transactions in a second, a new system of account addresses, reduced transaction fees, etc.
The mainnet v3 also upgraded the Lisk SDK's codebase with other protocol improvements to provide an enhanced development experience.
Lisk Partnerships
Lisk creates more partnerships along with the network development. During the AmpliFire 2021 event, the protocol announced cooperation with the DApps analytics platform DappRadar. The partnership's goal is to grow the Lisk blockchain protocol by attracting more users and developers to Lisk. Lisk will integrate into DappRadar rankings, enabling DappRadar visitors to follow Lisk's progress and compare its metrics with other DApps.
Lisk has also revealed partnerships with crypto exchange Binance, social media marketing agency NinjaPromo, strategy consultancy advising company Wachsman, and developer hiring company WeAreDevelopers.
Cooperating with Binance, Lisk will start campaigns to educate the next generation of developers to create blockchain apps in JavaScript.
How to Buy Lisk
You can buy LSK (Lisk) through cryptocurrency and fiat currencies (USD) on various cryptocurrency exchanges supporting the token. Among the exchanges that support LSK tokens are Upbit, OKEX, Binance, Kraken, HitBTC, LAToken, and other Lisk markets. You should check each platform's registration and trading policies and agree to their terms to sign up for an account and start trading.
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