LSK is the native token that fuels the Lisk platform and it operates as a Utility Token it is used to pay for transaction fees on the Lisk blockchain.
The Lisk platform was launched in May 2016, it is an Open-source and blockchain-based platform with a goal to make blockchain technology more accessible for developers to build Decentralized application (DApp). It does this by utilizing side chain technology. The Lisk network became officially active on the 24th of May, 2016 with the formation of the first block on the Lisk blockchain which is also called the genesis block, having 100 million LSK. The genesis LSK tokens are the original application of the Lisk protocol and were primarily issued to Initial Coin Offering (ICO) participants and stakeholders by the project team.
Lisk aims to address the problem encountered by developers when creating applications using blockchain. Developers put so much effort into their work but are usually under the mercy of centralized entities such as Google Play and Apple’s App Store, which get the largest share of revenue.
External Security Audit
In a bid to offer customers top notch security an external security audit was recently carried out by Least Authority of Lisk SDK 5.0.0, and the forthcoming Lisk Core 3.0.0. The audit covered the entirety of work completed as part of the Network Longevity phase of the Lisk protocol roadmap. The security audit was efficaciously completed without any main issues being identified, making way for Lisk Core 3.0.0 to be eventually released on the mainnet safely and securely.
Lisk is spear headed by a vivacious team leader Max Kordek who also is the Chief Executive Officer and a co-founder of the great establishment and Oliver Beddows. Kordek has been a devoted follower of blockchain, and through many experiential years he has been able to gather a lot of insights on blockchain technology for years before the start-up of Lisk. He also enjoys science fiction greatly.
Beddows who co-founded the Lisk platform operates simultaneously as the Vice President and Chief Technology Officer. With more than 12 years of development experience under his belt, he believes blockchain is a powerful technology that can transform the world for the better.
The team comprises of about 50 team members who work on blockchain development, marketing, community management, business development and various operations to strengthen the Lisk platform. The Lightcurve team is based in Zug, Switzerland also having a branch in Berlin, Germany and is solely on the retainer of the Lisk Foundation.
The Lisk is a platform that gives allowance for developers to create Decentralized application (DApp) some examples are the Ethereum or NEO. However, Lisk differentiates itself from other similar platforms in various ways. The Ethereum (ETH) platform utilizes Solidity which is a language unique to it, thus makes it mandatory for all developers who will be making use of the platform to learn a new language. It is also worthy to note that the platform is majorly devoted to smart contracts. This in-built code causes third parties to have to operate as front-end applications.
Lisk makes use of Sidechain technology and a Software development kit (SDK) to authorize developers to produce high-quality Decentralized Applications.
Lisk’s SDK Core Compartments
Consensus Algorithm – this is Deputized Proof of Stake (DPoS)
Sidechain – this allows the developers to make independent blockchains that are connected to the main chain
Back-end – is an entirely customizable code that gives allowance for developers to create Decentralized applications freely
Front-end – has a friendly User interface (UI) where people generally can interact with the chains
Integrating the capacity of the main chain with open-source blockchain development kits, developers have the means and path to create exhilarating, appropriate, and reachable digital applications. These apps can then be made available as a package in a decentralized app source. The LSK token is used to fuel transactions and services on the Lisk blockchain.
Sidechains are autonomous blockchains which are connected to the main blockchain without affecting in anyway its performance. This opens the ground for such interoperability that gives allowance for users to perform previously incredible tasks such as transferring tokens directly between chains. On the other hand, sidechain technology aids the work of developers as it allows them to customize things like Consensus Algorithms, testnets, and asset tracking.
Several side chains have integrated just one blockchain an example is Bitcoin while some others are developed for private blockchains. Lisk has an idea to combine these in a bid to create the best solution which is maintaining security with side-chain flexibility. Developers can make their own blockchain which will operate as a sidechain, while Lisk sustains the mainchain which is protected by 101 delegates. With such arrangement put in place the going down of a side chain would not affect both the network and the main chain.
Governace of Lisk Blockchain
The Lisk network is structured in such a manner that it is both decentralized and trustless. This validates the fact that no single individual is in direct control. The network is jointly secured by 101 democratically elected delegates whose primary responsibility is to confirm and broadcast the validity of transactions by including them in forged blocks. All Lisk accounts on the network are entitled to vote for delegates registered on Lisk’s blockchain network. Lisk utilizes Delegated-Proof-of-Stake (DPoS) consensus algorithm.
Delegated Proof of Stake
Lisk utilizes a delegated proof of stake which operates in the following manner.Any user can become a delegate simply by registering an account on the network. Account holders can easily collect votes from any other LSK holder. 1 LSK token is equivalent to 1 vote, and holders are allowed to vote with their current LSK holdings.
The 101 delegates with having the are given access to add new blocks on a blockchain and in doing this they also secure the network. These delegates are described as being in an “active” mode while the others are on “standby.” Also, the order of the active and the standby delegates is continually changing.
"In my opinion, delegated proof of stake (DPoS) is the only scalable, secure and proven consensus algorithm on the market today. Regular proof of stake (PoS) or proof of work (PoW) consensus algorithms are not scalable enough in my view, and what the Ethereum Foundation is working on for Ethereum 2.0, i.a. the sharding mechanism, is not real-world proven today. We need something proven and scalable and secure, which is delegated proof of stake.
In summary, at Lisk, we are not here to bring the most cutting-edge technology to the industry. We're here to make blockchain technology accessible, to bring it to the people. That's the most important thing for us, and delegated proof of stake checks all the right boxes in attracting validators."
Max Kordek said when asked about the DpoS in an interview
Initializing a Lisk account
A Lisk account comprises of a private key and a Public key . The private key is a derivative from the passphrase generated at the initial creation of the account. The public key is generated from the private key which in turn is used to create a Lisk address connected with your Lisk account. All Lisk address are computed as a hash of the public key and can be viewed as its abbreviation. With this is place there is the possibility of several public keys yielding the same address and this occurrence is known as "address collision".
When there is a collision attack it means that a user with a different private key sends funds from an existing Lisk address. This attack only occurs with Lisk accounts that were not initialized. The initialization of an account which involves sending at least one outgoing transaction, which indicates that the correct public key is then recorded on the blockchain. This action establishes account security simultaneously making it collision-free, as the network is able to detect non-matching public keys.
The platform thereby recommends the that holders of Lisks account take proper steps to initialize their accounrts ,by following the outlined steps;
- Making a deposit of a small amount of LSK tokens in Lisk account.
- Initializing your account by making an outgoing transaction.
- Until after initialization users are advised not to carry out transactions requiring higher amount of LSK tokens.
For users who already have a Lisk account ,they can easily sign in with their generated passphrase or a hardware wallet, before sending a transaction, which might be voting for delegates, registering a delegate, balance transfer to yourself or even to another user. After any one of these types of transactions has been carried out successfully, the account will then be initialized.
Applications created on Lisk
Some of the applications created on Lisk are outlined in the table below:
|Application Name||Application Developer||About Application|
|Lisk Bike||Lisk Center Utrecht||A decentralized bicycle sharing marketplace|
|Lisk Supply Chain||Lightcurve||A decentralized supply chain tracking system using an IoT device|
|Lisk Roulette||Moosty||A decentralized, fully deterministic game of roulette|
|Lisk Inviter||Lemii of Sidechain Solutions||A decentralized app to validate and control event attendees|
|LDice||Karek of Thepool.io||A decentralized, fully deterministic game of dice|
|Arcado Network||Michiel Mulders and Endro||A decentralized reward system to any multiplayer game.|
|Decentralized Organization Chain||Korben3||A decentralized blockchain application to receive funding and investors to influence company decisions.|
|Lisk Bills||Lightcurve||A Blockchain Invoicing Application|
|FeatChain||JesusTheHun||A decentralized proof of skills and achievements application|
The Lisk blockchain was launched in May 2016 and it had an initial distribution of 100,000,000 LSK. With individuals(users) being rewarded for securing it. The aspect of incentivizing is part of every new block and cannot be changed, it is known as a block reward. The LSK token supply is disinflationary with the block rewards initialized with 5 LSK for every new block, the algorithm behind has a constant decrease of 1 LSK annually. Lisk blockchain has since October 2020,made distribution of block rewards of 1 LSK a rate the platform plans to remain forever constant.
The LSK token has a Circulating Supply of 123, 957, 448 tokens and a Total Supply of 140, 012, 060. LSK’s all-time high was $39.31 (Jan 7, 2018), and its all-time low was $0.095652 (Mar 02, 2017).
Currently there is no stated Maximum Supply of LSK in circulation. The inflation rate has been structured to experience a decrease over time, for example to 1.74% in the 15th year due to the reduction of the forging rewards.
LSK Initial Coin Offering
LSK ICO Price : $0.0746682
Start Date : 02/22/2016
End Date : 03/21/2016
Funds Raised : USD$6,346,800
ICO Token Supply : 100000000
Token Supply After ICO : Increases
Lisk transaction fees
Outgoing transaction: 0.1 LSK
Second passphrase: 5 LSK
Delegate registration: 25 LSK
Voting: 1 LSK per voting round (33 votes can be made per voting round)
Multi-sig: 5 LSK per member
LSK Cryptocurrency Exchanges
Lisk has been listed on various Cryptocurrency Exchanges, including Binance, Poloniex, Bittrex, HitBTC, CoinSwitch, kraken, Cointree, KuCoin, YoBitNet and Huobi. For the majority of the exchanges, users are required to purchase Bitcoin (BTC) or Ethereum (ETH) and before exchanging it for Lisk.
Storing the LSK
Lisk has a wallet accessible for token storage both desktop and mobile platforms . The desktop version avails users to vote for delegates as well as to keep check on the Lisk blockchain ,inspect delegates, monitor transactions and blocks. Lisk also has some third-party wallet recommendations Trezor One, Trezor Model T, Ledger Nano S, Atomic Wallet, Exodus (Wallet), Guarda Cryptocurrency Wallet and Ledger Nano X.
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