With the emergence of Bitcoin, the first cryptocurrency in the world, no one could have expected that there would be more than 1,000 other cryptocurrencies in the world after several years. Interestingly, over 400 “coins” have already collapsed and no longer exist in the world, and thousands and thousands of others are waiting for their successful ICO, that is, the initial coin offer to raise the amount needed to enter the world market.
As one of the largest ICOs in its time, Lisk appeared in 2016, but today it raises the question of what Lisk really is and what is its function as a cryptocurrency.
What is Lisk?
One of these newly created cryptocurrencies is Lisk (LSK), which was created in 2016 by Max Kordek and Oliver Beddow.
It is conceived on the blockchain platform and LSK token that serves as a platform for work. Like all other cryptocurrencies, Lisk is funded by ICO.
Soon, the investors recognized the potential behind this platform, and 14,000 Bitcoins were invested to fund the project, and Lisk at that time held the title of the most financed crowdfunding campaign in the world.
Now that you know what Lisk is, and as the project started, we will talk in the text below about the specifics of Lisk and how it is different from other cryptocurrencies.
The use of “sidechains”
The blockchain is most easily defined as an online book containing all transaction records between users of that blockchain. The blockchain problem is that it can be slowed down easily due to a large number of transactions of either small or large volumes. This is called the problem of scalability we have already talked about earlier.
Lisk uses “sidechain” or side chains that serve as support for the main chain – blockchain.
Again, we will use a simple example to simplify this seemingly complicated term.
Let’s imagine that the blockchain book in which the records are, then the sidechains would be margins in that book. The margin serves to make the book easier to read, and that less important data does not come so much to the point of view and do not bother the reader.
The same way the sidechain works. It allows the network not to slow down so the sidechain performs smaller transactions, and the main blockchain can always be swift and fast because of this.
Created for application designers
Their goal is to make all decentralized applications generated using their blockchain and coin. Knowing the potential of decentralized applications, we can say that Lisk’s future is bright.
Delegated “Proof of stake”
There is something to know about Lisk’s consensus model. Each LSK carries one vote, but only 101 of the largest users have the right to participate in company-related decisions.
Does Lisk have a bright future?
We hope that you are no longer asking yourself what Lisk is and that you have learned from this text (at least partially).
Many compare Lisk with the Ethereum platform. It is evident that there is a lot of similarity between them, primarily because of decentralized applications and smart deals.
Max Kordek claims, however, that Lisk is not a competition for Ethereum. Lisk looks great among programmers and we can say that this good voice could only spread.
Lisk is currently the 24th Cryptocurrency by the market cap that represents a multiplicity of all coins and their prices (the value of all LSKs in the world).
One LSK is worth $ 1,52 (USD) at the time of writing. Like most cryptocurrencies, Lisk is also subjected to volatility and its price is positively correlated with Bitcoin and other cryptocurrency prices (when the market is growing globally then LSK prices are rising and vice versa).