What is Lisk (LSK)?

Introduction

The aim of most blockchain initiatives is widespread adoption, this is especially true for decentralized applications (dApps). However, there has not been much acceptance from either users or developers. The challenging issue for developers is that several blockchain networks have their customized programming languages, which require the learning of a completely new language to create a decentralized application. For example, Ethereum builds using solidity, while Solana uses Rust, C, and C++.

This is the major challenge Lisk was designed to solve; a blockchain platform that allows developers to build a variety of apps on its network using the popular programming language, JavaScript. The Lisk blockchain enables the development of dApps and features utilizing the Lisk App Development kit framework, not smart contracts. This means that developers can create both the frontend and the backend (app and user interface) functionalities. As a result, programmers may develop blockchain applications that can be easily downloaded. This decentralized access to the application developed by users on the Lisk network is another current innovation within the blockchain sector.

Additionally, Lisk is open-source software, which gives users a clear picture of what different developers are working on and allows them to improve new Lisk network apps and functionalities.

What is Lisk? A Decentralized Network for Creating DApps using JavaScript

Lisk is an open-source blockchain platform that was created to enable developers to build decentralized applications (dApps) in JavaScript. The platform was launched in 2016 and uses a unique sidechain architecture, which allows developers to create their custom sidechains, or “child chains,” that are connected to the Lisk mainchain.

This architecture is designed to increase scalability and flexibility for dApp development, as well as provide a more efficient and secure way to handle transactions. Additionally, Lisk uses a delegated proof-of-stake consensus mechanism, which allows users to vote for delegates to secure the network. The Lisk native coin, LSK, is used to pay for transactions and delegate voting on the network.

Lisk has been successful in attracting a number of developers to its ecosystem. Eevty, a distributed social networking NFT site, Colecti, an NFT e-commerce platform, and Kalipo are some of the most well-known Lisk apps. Other apps within the Lisk network include Identity, Faet, and RGB.

History of Lisk

Lisk was created by Max Kordek and Oliver Beddows in 2016, as a fork of Crypti, a public blockchain platform established in 2014. Max and Oliver were part of the Crypti development team but decided to fork the Crypti code and start up Lisk due to disagreements within the Crypti network.

They wanted to create a platform that would make it easier for developers to build and deploy decentralized applications (dApps) using a programming language that was already widely known and used, that’s JavaScript. They believed that by using a more accessible language, they could help to expand the blockchain ecosystem and bring in a new wave of developers and businesses.

They launched the Lisk mainnet in May 2016, with a 100 million LSK token distribution through an Initial Coin Offering (ICO). Since then, Lisk has undergone several updates and upgrades, which includes Lisk Core 3.0 which was released in 2021. This was a significant upgrade that included various features such as Lisk Protocol’s new version, increased security, improved scalability, and much more.

Lisk has also been actively involved in partnerships and collaborations with other blockchain projects and organizations such as Microsoft Azure, GEM Partners, and the like, to promote the development and adoption of blockchain technology.

How does Lisk Network Work?

The delegated proof-of-stake (DPoS) consensus protocol used by the Lisk platform enables Lisk holders to elect delegates to protect the network. These delegates are in charge of the upkeep of the network, transaction validation, and block creation.

Delegates are compensated with LSK tokens for their efforts, and the total number of delegates that can be chosen is 101. As opposed to the conventional proof of work (PoW) mechanism utilized by other blockchain systems. DPoS enables a more public and decentralized approach to network maintenance.

Developers must first establish a new sidechain and launch their dApp on it to set up a decentralized application on the Lisk platform. The sidechain can interact with other blockchains and have its own set of laws, coins, and smart contracts.

Lisk Elements is a set of JavaScript modules that gives developers quick access to the capabilities and functionalities of the Lisk network. Lisk’s native coin, LSK, is utilized for network transactions and delegate voting. Additionally, it acts as compensation for the delegates who maintain the network. LSK can also be used for delegate votes, pay for transaction costs on the Lisk network, or transfer value.

Ecosystem and Roadmap

Source: Lisk.com

The decentralized apps (dApps) development and deployment process is made simple for developers by the Lisk ecosystem, which consists of a collection of tools and services. This comprises the Lisk Commander, a suite of command-line tools for maintaining and deploying decentralized applications, as well as the Lisk SDK (software development kit) that offers a collection of plugins and APIs for creating dApps. Another essential component of the ecosystem is the Lisk Hub, a functional storage and administrative interface for Lisk.

Lisk’s long-term goal is to establish itself as the premier platform for developing decentralized applications. It is aiming toward a number of significant milestones to accomplish this. The Lisk team has quite a clear vision and goals for the coming years, and they have announced new features and enhancements like Lisk Core 3.0, which was released in 2021. This major update included several features like the new version of the Lisk Protocol, increased security, improved scalability, and much more.

In addition, they are putting a lot of effort into encouraging developer collaboration and cooperation while also educating and supporting the development community. Additionally, they are attempting to collaborate and form alliances with other businesses and institutions in order to push the advancement and usage of blockchain technology, particularly its innovation.

What Problem Does Lisk Solve

Source: Lisk.com

The difficulty of developing and distributing dApps is one of the main challenges that the Lisk protocol solves. On conventional blockchain systems, developing decentralized applications can be a difficult and time-consuming process that necessitates developers to have a solid grasp of the platform’s underlying technologies and programming languages. By employing JavaScript, a popular and frequently used programming language, Lisk streamlines this procedure and makes it more approachable for developers.

Lisk also addresses the flexibility and scalability of decentralized app development. The sidechain architecture of Lisk enables programmers to build unique side chains that are linked to the Lisk mainchain. By employing a Delegated Proof of Stake consensus protocol, which is a more open and decentralized method of network maintenance, Lisk also solves the issue of privacy and governance in blockchain systems. Lisk owners can cast votes for delegates to protect and manage the network via DPoS.

Lisk Interoperability Solution

Source: Lisk Website

The research team at Lisk.js 2021 event was thrilled to showcase their latest publication on the Lisk interoperability solution, a key focus for the team for most of 2020. The team conducted extensive research and analysis of the latest developments in blockchain interoperability to determine the best direction for the solution. After careful consideration and internal review, the team finally released their proposals in the form of LIPs (Lisk Interoperability Proposals) at the Lisk.js 2021 event. The result is a scalable and decentralized solution for the Lisk ecosystem, which the team takes great pride in.

To make the Lisk interoperability solution easier to understand, it has been organized into 8 roadmap objectives. Each objective outlines a key aspect of the solution, which is addressed by one or more LIPs (Lisk Interoperability Proposals). These objectives are as follows:

Cross-chain Messaging Protocol

The LIP adds cross-chain update transactions to the interoperability module. These transactions transmit information between chains and serve as the means of communication between them. By posting a cross-chain update, the receiving chain receives information about the progress of the sending chain, as well as any accompanying cross-chain messages. This allows for seamless communication between chains.

Sidechain Registration and Lifecycle

The LIP chain registration allows for the creation of interoperable sidechains in the Lisk ecosystem. The registration process involves a sidechain registration transaction for the Lisk mainchain and a mainchain registration transaction for the sidechain. Once both transactions are processed, the sidechain becomes part of the ecosystem. However, the ability of a sidechain to interoperate can be revoked permanently under certain conditions, resulting in a loss of cross-chain interaction for its users. This means that once a sidechain is terminated, users can no longer send or receive tokens, messages, or NFTs between the sidechain and other chains. To address this issue, the LIP “Sidechain recovery transactions’’ outlines three transactions to recover such assets in the event of a sidechain termination. These are the message recovery transaction, token recovery transaction, and NFT recovery transaction.

State Model and State Root

The LIP introduced a new data structure, the sparse Merkle tree, to the Lisk protocol, along with the format for inclusion proofs. This type of Merkle tree is used to validate a key-value dataset with a single hash value (the Merkle root). Unlike a regular Merkle tree, elements of the dataset in a sparse Merkle tree occupy a fixed position determined by their key, and the resulting Merkle root depends only on the final dataset, not the order of insertion.

The LIP “State model and state root” defines the state architecture of a chain in the Lisk ecosystem. The state of a chain is built on top of the key-value stores defined by each module, using a sparse Merkle tree, referred to as the state tree. The entire state is authenticated by the Merkle root of the tree, known as the state root.

Token Standards for the Lisk Ecosystem

The LIP Introduced an interoperable token module minting, burning, and transferring tokens within the Lisk ecosystem. This module provides a standard, secure, and controlled way for any chain in the ecosystem to handle tokens. The tokens specified in this LIP are fungible, and the proposal defines the storage and transactions for the LSK token.

Lisk-BFT for Interoperability

The LIP “Lisk-BFT” outlines the implementation of a new consensus protocol, Lisk-BFT, in Lisk Core 3.0. It details a two-round voting process for validators to finalize blocks. To support Proof-of-Authority and cross-chain certification, the Lisk-BFT protocol requires the ability to assign different finality weights to validators, representing the contribution they make to finalizing blocks. The LIP outlines how these weights and the weight threshold for block finality can be adjusted over time.

Block Header Format

The LIP New block header schema outlines all changes made to the block header format in the Lisk ecosystem. This LIP serves as a central repository for modifications to the block header, ensuring that all updates are documented in a clear and organized manner. The new block header schema allows for efficient and streamlined updates to the header structure, promoting the overall growth and development of the Lisk ecosystem.

Validator Selection Mechanism for Sidechains

The LIP Proof-of-Authority validator selection mechanism defines the process of selecting and managing the validators in a PoA consensus system in the Lisk ecosystem. The PoA mechanism is used to replace the traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) consensus mechanisms in a more secure, efficient, and energy-saving way. This LIP outlines the rules and requirements for becoming a validator, the process of changing validators, and the penalties for misbehavior. The PoA mechanism is an important step towards achieving the goal of providing a secure and decentralized network of interoperable chains in the Lisk ecosystem.

Upgrade Signature Scheme

The LIP BLS (Boneh-Lynn-Shacham) signatures aim to add support for BLS signatures to the Lisk ecosystem and to provide a BLS public key for validator accounts to use in aggregate signatures for certificates. Additionally, a separate EdDSA forging key pair is introduced for validators to improve security by not requiring the storage of secret keys or passphrases on remote servers.

Note: BLS stands for Boneh-Lynn-Shacham, which is a digital signature scheme based on pairing-based cryptography. It is a type of public-key cryptography that uses the mathematical properties of elliptic curves to provide security. EdDSA stands for Edwards-curve Digital Signature Algorithm. It’s a digital signature algorithm that provides security and speed improvements over previous digital signature algorithms.

Benefits of Lisk Protocol

Using the Lisk platform to create decentralized applications (dApps) has some benefits. Among the key benefits are:

• Development of dApps is made easier by Lisk’s usage of JavaScript. Developers can effectively build and launch decentralized applications on the platform.
• Scalability and flexibility are increased because Lisk’s sidechain design enables programmers to build unique sidechains that are linked to the Lisk mainchain. As a result, applications can have their own set of guidelines, coins, and smart contracts that can be tailored to meet their unique requirements. This makes the development process for dApps more adaptable and scalable.
• Secure authentication and management: Lisk uses a Delegated Proof of Stake consensus protocol, which provides a more distributed and democratic method of network upkeep. Lisk owners can vote delegates to protect and maintain the network via DPoS, which enhances the network’s security and governance.
• Vibrant developer community: Lisk also has a thriving and vibrant developer community that supports developer collaborative efforts, offers education and tools, and is committed to assisting developers in building and deploying dApps on the Lisk network.

Challenges of Lisk Protocol

There are some risks involved with Lisk, just like there are with any technology or innovation. The major risks are:

• Lack of adoption: Currently, Lisk blockchain is a relatively new platform, and still developing its user base. However, there are chances that it may not be broadly adopted as anticipated.
• Competition: Decentralized application (dApp) programming platforms and other blockchain systems like Ethereum, EOS, and TRON are Lisk’s greatest competitors in the industry. The already established user base and development community of these platforms may make it more challenging for Lisk to acquire traction.
• Volatility: LSK as a cryptocurrency is highly susceptible to market volatility. This indicates that its price can change quickly and unexpectedly.
• Security: Lisk is vulnerable to security attacks like hacking, phishing, and malware, just like any blockchain platform. Users should be mindful of these hazards and take the necessary precautions to secure their assets and private data.
• Technical problems: Lisk as a blockchain platform can occasionally have problems relating to bugs and faults that impair the functionality of the system and its dApps.

Note: Before investing in Lisk or other cryptocurrencies, it is important to be conscious of the risks involved and to conduct personal research.

What is Lisk Token (LSK)?

LSK is the native cryptocurrency of the Lisk blockchain platform. It is used to pay for transaction fees on the network, as well as for creating and deploying decentralized applications (dApps) on the Lisk sidechains. Lisk holders can also use LSK to vote for delegates who maintain and secure the network.

Further, LSK is used to incentivize users to perform certain actions on the network, such as validating transactions and securing the network. LSK can be stored in a Lisk-compatible wallet, such as the Lisk Hub or Lisk Mobile Wallet, and can be traded on Gate.io. The total supply is capped at 133,248,290 LSK.

Tokenomics

Transaction Fees: LSK is used to pay transaction fees on the Lisk network. This incentivizes users to hold and use LSK, as they need it to participate in the network.

Delegate Rewards: Lisk uses a Delegated Proof of Stake (DPoS) consensus mechanism. LSK holders can vote for delegates who maintain and secure the network. These delegates receive a reward for their work, which is paid in LSK. Users earn rewards by securing and approving transactions.

Sidechain Creation: Lisk allows developers to create and deploy their decentralized applications (dApps) on sidechains. This process requires a small amount of LSK as collateral, needed to create and deploy dApps on the Lisk network.

Token Cap: The total supply is capped at 133,248,290 LSK, this means that the number of LSK tokens in circulation is limited, making the token scarce and valuable.

Token Distribution: Lisk tokens were distributed through an initial coin offering (ICO) in 2016, with the majority going to early investors. However, Lisk also set aside a portion of the tokens for community development, marketing, and other initiatives.

Governance

Lisk enables programmers to create and launch decentralized apps (dApps) on sidechains. LSK holders can cast votes for delegates who look after and secure the network through the use of a Delegated Proof of Stake consensus mechanism. These delegates receive compensation for their efforts, which encourages them to protect and maintain the network.

Additionally, the Lisk network is composed of a decentralized autonomous organization’s treasury that is deployed to finance marketing, community development, and other projects. The 133,248,290 LSK token cap indicates that there is a finite quantity of LSK tokens in existence. The LSK tokenomics are intended to encourage people to engage with the Lisk network.

Importance of Holding LSK

• Potential for appreciation: Like all cryptocurrencies, the value of LSK is subject to market demand and supply, and if demand for LSK increases, its value could rise.
• Staking rewards: Lisk uses a Delegated Proof of Stake (DPoS) consensus mechanism; holders can earn staking rewards by participating in the network and voting for delegates. This incentivizes users to hold onto their LSK and participate in the network, which can help maintain the stability and security of the network.
• Access to the Lisk ecosystem: By holding LSK, you have access to the Lisk ecosystem, which includes a range of decentralized applications (dApps) built on the Lisk platform. This gives you access to a range of services and applications built on the Lisk blockchain.
• Voting rights: LSK holders have the right to vote for delegates who maintain and secure the network. This allows LSK holders to have a say in the direction and development of the Lisk network.

Is LSK a Good Investment?

As with all investments, investing in LSK comes with risks and rewards. LSK, like other cryptocurrencies, is subject to high volatility, which means that its value can rapidly increase or decrease. The potential for appreciation can make LSK an attractive investment. Additionally, the Lisk ecosystem and growing community of developers and users offer the possibility for long-term growth.

However, the cryptocurrency market is at its nascent stages and subject to rapid changes and fluctuations. Thus, investing in LSK can be considered a risky investment because of the possibility of losing your investment. Also, there is the risk of cyber attacks, security breaches, and other risks that can negatively impact the value of LSK.

Ultimately, whether LSK is a good investment or not will depend on your investment goals, risk tolerance, and financial situation. It’s important to carefully consider these factors and to conduct thorough research before investing in LSK or any cryptocurrency.

How to Buy LSK Using Gate.io

• Visit Gate.io
• Create an account
• Verify your email address
• Complete KYC
• Go to “Buy Crypto”
• Proceed to buy LSK

Lisk Partnerships

Microsoft: Lisk has a partnership with Microsoft Azure, which allows developers to deploy and test Lisk dApps on the Microsoft Azure cloud platform.

Lightcurve: Lightcurve is a blockchain consultancy firm that helps businesses and organizations to develop blockchain solutions and to build decentralized applications. Lisk has a partnership with Lightcurve to help bring more developers and businesses to the Lisk ecosystem.

GNY.io: Lisk has a partnership with GNY.io — a decentralized machine-learning platform — to help bring more machine-learning capabilities to the Lisk ecosystem.

BlockFi: BlockFi is a cryptocurrency investment firm that provides financial services for crypto investors. Lisk is in partnership with BlockFi to help bring more institutional investors to the Lisk ecosystem.

Recent Developments

• Lisk 4.0 Upgrade (January 2022): Lisk upgraded to version 4.0, which introduced several improvements, including a more efficient consensus mechanism, better security features, and improved transaction processing times.
• Lisk Center Utrecht Launch (March 2022): Lisk Center Utrecht, a research and development center focused on blockchain technology, launched to drive innovation and education in the Lisk ecosystem.
• Lisk Identity Launch (May 2022): Lisk Identity, a decentralized identity solution built on the Lisk blockchain, was launched to provide a secure and easy way for individuals and organizations to manage their digital identities.
• Lisk SDK 5.0 Release (October 2022): Lisk released the Lisk SDK 5.0, which introduced new developer tools, improved performance, and better scalability for building decentralized applications on the Lisk blockchain.

Conclusion

Lisk is a pioneering blockchain platform that provides a comprehensive set of tools and resources for developers to create and deploy dApps and sidechains using JavaScript. Lisk’s commitment to fostering a thriving developer community is also a significant factor in its success, as evidenced by its active developer community.

With its flexible and modular architecture, Lisk has the potential to power a wide range of decentralized applications and services, from gaming and social media to finance and healthcare.

As the blockchain industry continues to develop, Lisk is well-positioned to make a lasting impact. Its innovative approach and commitment to user-friendly designs will likely attract more developers and users to the platform, making it an exciting platform to watch in the coming years. Whether you’re a developer, entrepreneur, or simply interested in the future of blockchain technology, Lisk is a platform worth paying attention to.