Over the recent years blockchain technology experienced a great evolution and gained popularity with cryptocurrency. This attracted a large crowd to it, but the lack of developer’s adoption was a great problem . In 2016, Max kordek and Oliver Beddows saw this problem and with their vision to make blockchain technology more accessible, they imagined a blockchain framework which accelerates and simplifies development. A new blockchain technology emerged with a system enabling developers to create their own blockchain application in a “sidechain” link to the lisk mainchain. ”Quite interesting”, you might be saying right now. To know more about it and how it functions, you are on the right spot.
WHAT IS LISK?
Lisk is a decentralized network or let’s say blockchain technology established by Max kordek and Oliver Beddows in 2016. With the aim of making blockchain technology more accessible, it is based on its own blockchain network and token LSK hence enabling developers to create, distribute and manage decentralized blockchain applications by deploying their own sidechain linked to the LISK network including custom token
Between February and March 2016 lisk launched its ICO where it raised over 14000BTC and distributed a total of 100,000,000LSK in this order;
Campaigns and bounties
Advisors, partners and third parties
First day ICO participants
LISK doesn’t use Proof of Work like Bitcoin, or Proof of Stake like Nxt rather they use a consensus algorithm called Delegated Proof of Stake (Dpos) meaning that every LSK holder can vote for mainchain delegates which are securing the network.
Lisk is more than just developer tools; its ultimate goal is to bring talent into the Blockchain industry by enabling developers to build the decentralized future with their SDK. Hereby, they will provide an easy entry to take people from the idea to the product.
Lisk offer the best of both worlds with its mainchain that offers stability and security while the sidechains are utilized to have unlimited flexibility. Hence they offer developers the opportunity to have an environment where they have full control to create their blockchain network as sidechain without confronting them with the complexity related to the creation of a blockchain network.
HOW SECURE IS LISK?
In addition to that, lisk network is secured by 101 democratically elected delegates who verify and confirm the validity of a transaction by adding it to a generated block.
Lisk also use a brain wallet which creates accounts and users to use them as they subscribe. Every account has a passphrase which let you access it. Passphrase can’t be reset so if forgotten you can no longer get access to your account. If somebody type your passphrase they will get access to your account.
It also has a secondary passphrase which is needed to validate your transactions. So if the secondary passphrase is forgotten you can no longer get access to your money, and remember that passphrase can’t be reset so don’t even try.
HOW DOES IT FUNCTION?
The basic and main function of LISK is to create a link between blockchain technology and developers, which have been very difficult since it was not easy for developers to establish their own blockchain application. We will see the various tools which help in the implementation of this major function of lisk and other sub functions
Lisk is a cryptocurrency and its token is LSK. LSK token can be bought and sold and also used to buy and sell some articles. The graph below shows the evolution of LISK over the recent months by COINMARKETCAP.
Major exchanges where LSK can be bought and sold include Bittrex, Poloniex, YoBit and Jubi. There, LSK tokens can be exchanged for other cryptocurrencies including Bitcoin. It takes 10seconds for a transaction to go from the sender to receiver but, takes about 1-2minutes for it to be classified immutable by mainchain delegates.
New LSK token are created when active delegates receives rewards for securing the network. There is no maximum amount of LSK in circulation but the inflation rate decreases with time.
Fees in the LISK network are fix for every type of transaction done. It is repartitioned as follows;
Second passphrase setup
5 LSK per multi-signature member
- SIDECHAIN :
LISK permits users to create their own blockchain network called sidechain and which is related to the lisk mainchain. Sidechain are fully customizable, it is free of spam or pollution from the mainchain. You can also change your transaction types and parameters on your sidechain
You can use the LSK token in your mainchain as well as you can create a new custom token and hence create a new cryptocurrency from your sidechain.
In case you use your LSK token in your side chain, there is special transaction type to transfer LSK from the mainchain to the sidechain since sidechains are completely new blockchains.
In case you want to use your own custom token, you can distribute them in an ICO or sell them on exchanges. In this way users have complete control over their token and can use them in your new blockchain (sidechain).
To easily exchange custom token against LSK you might implement a mini-exchange system inside your blockchain application.
If a bug arises in the lisk sidechain and there is a need to implement a hardfork, only the sidechain will be affected. The mainchain will have nothing to do with that.
You can create any type of blockchain application with your sidechain.
- ACTIVE DELEGATES:
Delegates are those who are in charge of securing the lisk network by confirming the validity of every transaction. There are two type of lisk delegate. We have the active mainchain delegates and the sidechain delegates.
There are 101 democratically elected mainchain delegates. Every LSK holder has the right to vote for a mainchain delegates. The first 101 delegates with the highest number of votes are assigned mainchain delegates and only they can earn block generation reward. Every other delegate is on standby waiting to become an active delegate or are now sidechain delegates.
Anyone can register for a delegate account in the lisk network, this delegate can collect vote from any LSK holder. LSK holder can only vote with the total amount in their account, in brief 1 LSK equals 1 vote.
The delegates also influence the time duration for a transaction to be immutable and valid, this is done through the delegate ROUND. Delegate round is a cycling through the 101 delegates, and each delegate generating a new blockchain through the passage.With a block time of 10seconds for a transaction to be valid, we have 1010 seconds for a round that is 17minutes. If an active delegate is offline the next one in the round takes care of creating its blockchain and the time for validity goes to 20seconds, hence the more active delegates are offline the more it last for a transaction to be validated.
- A BLOCKCHAIN APPLICATION PLATEFORM
Possessing a sidechain is not the main aim of users, since at the end sidechain is just a decentralized databases of blockchain applications, which allows the issuance of tokens of value, being immutable, and having a decentralized network. The main aim of most users is to develop blockchain application. Lisk don’t only give the opportunity to create a sidechain, it also offers necessary tools to develop a blockchain application.
Blockchain application consists of 4parts:
- Consensus Algorithm (e.g. DPoS)
- Sidechain (as the immutable database)
- Back end (the application logic)
- Front end (the application user interface)
By using the LSK token, leveraging other blockchain application, attracting sidechain delegates and starting into a new user base, blockchain application can connect itself to the lisk system.
Developers can create both the back end and front end of their blockchain application thanks to LISK app SDK; hence they can create a completely new app ready to be downloaded.
- A decentralized directory for applications
In addition to the blockchain applications, the network and ecosystem, lisk also offers a decentralized directory for application. Just like apple’s app store or Google’s play store. All application built on the lisk platform is registered on the mainchain and the application directory can find all blockchain applications and services. This serves as a connection between the mainchain and sidechain.
In general these are the main tools that help in the functioning of the lisk system.
Recently many people had false ideas about LISK and what it is so it is necessary for me to explain briefly what lisk is not, to prevent further confusion.
WHAT LISK ISN’T:
- LISK IS NOT A FORK OF ETHEREUM
Recently many people circulated the false idea that lisk is a fork of ethereum. Lisk codebase is instead a fork of Crypti. Some years from now cryptic collected a total of about 750BTC to establish its project. Crypti created a good codebase for the project but the lack of financial reserves had an impact enough to bring the project down. Max kordek and Oliver Beddows saw the potential of crypti and decide to take over i
- Lisk is not a competitor to every blockchain project!
The space occupied by the lisk plateform is large enough to have several projects solving the same issue.
- Decentralized storage can be done on a stand-alone blockchain or on Lisk.
- Anonymous transactions can be done on a stand-alone blockchain or on Lisk.
- A social blogging system can be done on a stand-alone blockchain or on Lisk.
- And the list goes on.
If comes the need to use one of these project in your lisk blockchain application, you can just plug into a third party technology and leverage their functionalities from within your Lisk blockchain app rather than re-implementing it again.
- LISK IS NOT A SMART CONTRACT.
Smart contracts consist of only a small part of the backend of an application, so if you want to develop a blockchain application you will need to join several smart contracts an rely on a third party to do the front end while lisk is not as such, lisk permits you to develop both the front and back end of your blockchain application without relying on any third party.
Before ending this article I want to put a small eye on the LISK foundation.
LISK FOUNDATION, WHAT ROLE DOES IT PLAY?
Lisk establish the LISK foundation because, they believed that general purpose protocols should be non-profit while the protocols and applications built on top of them can be for-profit. The lisk foundation is established in Switzerland. Why Switzerland? Just because, you have the availability to, Easy and fast incorporation, Support from government and promising developments, Security for the founders
The desire to contribute in the development and promotion of the lisk plateform led the lisk foundation and other promoters of the lisk project to create a Blockchain consultancy called Lightcurve which is the most efficient way in achieving the ambitious goal of lisk
The foundation council is in charge of the funds managements, in order to keep themselves from spending money unproductively as other projects did.
I think we have pass through the different corners that you need to know, link to the LISK project. I hope you can now have an answer to the different questions you had on the LISK project.
Thanks for reading !!