What is Lisk?
Normally, for an individual to come up with a decentralized up, he/she would be required first to hire a developer who would then start the coding process for the platform and then go ahead with dapp creation. This is a costly affair that Lisk aims to resolve. Lisk is rumored to be a fork of Ethereum, which is a myth that Lisk founders discredit.
Lisk’s network provides you with a blockchain so you can go straight to app development. Its digital token (LSK) was created as a way to crowdfund the project during the ICO period, but it’s currently used to cater for the expenses incurred within the community. In the case you want to use mainchain LSK tokens within your sidechain you have one limitation.
According to Lisk’s blog, “thanks to the Lisk App SDK you are not only able to develop the back end of your application (i.e. the functionalities), you are also able to develop a front end (i.e. user interface). This way you can easily create complete blockchain applications ready to download and use in one convenient package.”
Remember, you can’t send Litecoin (LTE) to the Bitcoin (BTC) network, which is why there is a special transaction type to transfer LSK tokens from the main chain to a side chain. The LSK tokens essentially never leave the main chain.
It’s also important to understand that the Lisk network is not a smart contract platform. According to Lisk’s blog, “Lisk blockchain applications are integrating their features directly into their back end.”
Creating decentralized apps on the sides allowed the Lisk main chain to remain scalable. Each dapp makes most decisions by themselves without involving the main chain. This means if a problem occurs in a side chain, the main chain remains intact.
Governance and decision making on this platform are similar to that of Bitshares. Consensus is attained through delegated proof of stake. The community has 101 delegates who maintain the network and get rewarded for ensuring normal functioning.
The Lisk blockchain technology operates through delegated proof of work algorithm. This method is quite effective in weeding out issues crippling Bitcoin currently. For instance, there is no extreme consumption of electricity or miner centralization problem.
The system is also designed to nullify whales who are just “hodling” their coins and use them to make the market prices dance to their tunes. As for the delegates, any idling member can be voted out, and fresh brains voted in.
Pros of Lisk
Independently operating side chains – allowing side chains to run on their own gives developers and companies an opportunity to customize the apps to their exact requirements. Failure in any of the side chains doesn’t affect the main chain.
Open source network – this means you can take a look at what other developers are working on and use the borrowed insight to improve your own dapp.
High volume transaction and faster processing – the beauty of Lisk is that side chains run independently leaving the main chain active to pursue other functions. This results in high volume transactions being carried out in a short time span.
Cons of Lisk
Less adoption – at the moment of this writing, the only well-known company that has partnered with Lisk is Microsoft Azure.
Less vibrant marketing efforts – bigger cryptocurrencies are making a lot of noise on social media sites like Slack, Twitter, and Telegram. Lisk as well needs to up their game by creating some buzz that will eventually expand its community.
Where to buy Lisk
Anyone interested in Lisk can buy it from Poloniex, Bloombit, YoBit, Bit and Bitrex using Ethereum, Bitcoin and other cryptocurrencies. It’s usually presented under LSK ticker.
If you aren’t averse to risk-taking and strongly knows the nitty-gritty of cryptocurrency trading then “hodling “a few amounts of Lisk can be a very profitable venture in the long run.