Lisk

What is Lisk (LSK)?

Lisk is a blockchain-based, open-source application platform that makes Web3 more accessible for users and developers. To that end, it provides an SDK (software development kit), allowing developers to create blockchain applications by utilizing JavaScript. Moreover, it’s designed to eventually enable the deployment of sidechains by developers within their network, all to allow for increased scalability for applications while simultaneously being linked to the broader Lisk ecosystem.

The Genesis and Vision of Lisk

Lisk’s origins can be traced back to 2016 when Olivier Beddows and Max Kordek founded it. It’s a fork of another Javascript-based cryptocurrency project known as Crypti, which Beddows and Kordek started in 2014.

The vision underpinning its formation has been to make itself one of the most accessible blockchains out there, seeking to grant individuals the benefits of cryptocurrency, Web3, and blockchain technology.

The Core Components of the Lisk Platform

Among the core components underlying the Lisk blockchain network are the Lisk SDK, Lisk Core, the DPoS (Delegated Proof of Stake) consensus mechanism, and scalable sidechains, all of which we will delve more into below.

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The Technology Powering Lisk

Now let’s look at the technology responsible for the proper functionality of the Lisk network.

Blockchain and Sidechain Technology in Lisk

Lisk employs both blockchain and sidechains as its core technologies. The former is essentially a distributed ledger that is shared across a network’s nodes. As for the latter, as implied by the name, it is a separate blockchain that is connected to the main blockchain, or mainchain, through a two-way bridge. Like this, several sidechains may then be linked to the mainchain, taking off some of the computational load.

How Lisk Enhances Blockchain Usability

Through Lisk’s open-source, SDK, and sidechain implementations, developers may find onboarding into the blockchain space to be simpler and more scalable, and as a result, applications may increasingly be developed, potentially attracting more users and enhancing blockchain usability in the process.

Components of the Lisk Platform

Here, we will be briefly diving into what the Lisk platform is primarily composed of.

The Role of Sidechains in Lisk

The role of sidechains within the Lisk network is a means of facilitating interoperability, scalability, and expanding Lisk’s influence within the blockchain realm.

They are something that developers may deploy to provide reduced transactional fees and greater TPS for scaling their applications.

Lisk’s Modular Cryptocurrency Architecture

Lately, within the blockchain sphere, there have been discussions surrounding the approaches that should be taken to best achieve increased adoption and scalability. This is where the whole monolithic vs. modular debate comes in.

Monolithic blockchains try to handle everything from consensus to execution to data availability altogether, whereas modular blockchains divide these tasks among multiple networks.

Consequently, Lisk feels that a modular approach is the better route to take if blockchain is to achieve mass adoption.

Lisk and Blockchain Scalability

Within this section, we will explore Lisk’s take on achieving greater scalability.

Addressing Scalability on Lisk

Scalability on Lisk is addressed primarily through its sidechain implementation and DPoS consensus mechanism. With the latter, it is considered to be a more democratic take on proof-of-stake (PoS), allowing validators to simply outsource block validation through the voting system currently employed.

Lisk’s Sidechain Innovation

Through sidechains, Lisk divides the various tasks that make up a standard blockchain while allowing for interoperability between the various sidechains, which, in turn, may generate more scalability throughout the entire network.

Lisk’s Approach to Decentralized Applications (DApps)

Let’s now turn our attention toward the approach that Lisk has adopted with regard to the implementation of decentralized applications here.

The Developer-Friendly Nature of Lisk

Among the challenges that the blockchain sector can face is how different blockchains utilize a wide range of programming languages, making it hard for developers to create applications that may be utilized flexibly across several platforms, contributing to an overall lack of accessibility in this regard.

Lisk’s solution is a modular and open-source SDK based on JavaScript that can make Web3 and blockchain more accessible to a wider base of developers.

The Potential for DApps within the Lisk Ecosystem

Hence, due to what has been stated earlier, the potential for decentralized applications here can be broadened due to the range of developers that may be attracted to developing applications on this platform, whether it be games, exchanges, or their very own blockchains, for that matter.

Security Aspects in Lisk

Let’s now turn our attention towards the security that Lisk has employed within its network.

Ensuring Security and Trust in Lisk

As stated earlier, to secure its blockchain, Lisk utilizes a more democratic variant of the PoS consensus mechanism. Hence, its native token, i.e., LSK, can be utilized to vote for up to 10 delegators, who may then secure the Lisk network on the voters’ behalf while sharing the rewards that will be distributed among them. With this process being distributed across more than 100 delegated validators, Lisk operates in a manner that can be fairly decentralized and secure.

Addressing Security Concerns in Blockchain

With the standard PoS mechanism, there is no choice that users have about who can validate or secure the network. Instead, the security of the network is left to those who can afford to stake a certain amount of tokens, a substantial one at times, and they may not always have the network’s best interests in mind, potentially leading to more centralization and censorship.

With Lisk’s DPoS, there may be a possible workaround to this, as users can now choose who is responsible for the network’s security.

Using Lisk

Here, we’ll be discussing how you can get onboard with this platform and use the various services on offer.

How to Get Started with Lisk

To get started with this platform and engage with the services it provides, you will need to create an account, and to do that, you will need a Lisk Wallet, as through it, you may engage with the various other user accounts created. You may download the application either on a desktop or mobile device. So, download it, follow the steps needed to create your account, and you’re then free to use this platform.

Participating in the Lisk Network

Depending on your role, you may participate in its network in various ways, either as a developer, as a standard user, which we covered earlier, or by voting within its governance, among others.

Lisk’s Native Token: LSK

Let’s now direct our attention towards its native token, LSK, and the various roles it can play within Lisk’s ecosystem.

Purpose and Utility of the LSK Token

To start with, it may serve as a medium of exchange for the services being provided. Other uses include governance, balance transfers, generating custom names within Lisk, and registering multi-signature wallets.

Tokenomics of LSK

As far as tokenomics are concerned, the token is currently valued at around $1, with a circulating supply of more than 144.8 million tokens, a market capitalization of over $162.7 million, and a daily trading volume of approximately $1.2 million. There doesn’t seem to be any indication that the supply is capped, so it should be safe to assume that the token might be inflationary.

Investing in Lisk

Within this section, we will discuss what investing in Lisk may entail.

How to Get LSK Tokens on Binance

Getting some LSK tokens on the Binance exchange will likely involve a couple of processes, which may take a while. These include registering for an account, going through KYC, making a first deposit, and then engaging with any of the various options provided to buy the tokens, followed by withdrawing them to your wallet.

To create an account, click on the link below, which will take you to Binance’s registration page using a special Coin-Labs referral code.

Analyzing Lisk’s Market Performance

As far as performance is concerned, its native token is down by more than 96% from its all-time high, which it hit back in 2018. It did manage to gain some momentum in 2021, back in the last bull market, but not by much, and since then it has struggled to garner any substantial worth, hovering around the $1 mark. So, sentiments appear to be bearish; therefore, you may invest, but only if you feel like Lisk’s services may have value or utility worth your time, not so much if you expect it to accrue in value.

Factors Influencing LSK’s Value

Like with any token, there can be various factors affecting its value, ranging from your standard supply and demand to other factors like developer activity, the variety of the applications on offer, node count, and government regulations, among others. So keep an eye out for them.

Lisk’s Roadmap and Future Developments

Currently, Lisk is in the final stage of its roadmap, ongoing for a while now, known as the Diamond phase, which is centered around making the network more interoperable with other networks, like Polkadot, Ethereum, Cosmos, etc. As for other upcoming developments, Lisk is set to launch its mainnet v.4.0 this year in early December.

Conclusion

Many feel that the key to acquiring mass adoption for the Web3 or blockchain space is greater accessibility, among other components. To that end, Lisk seeks to simplify the onboarding process for both users and developers and create an ecosystem where both may benefit from interoperability coupled with faster throughput and lower fees.

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Therefore, we are not responsible for the investment decision in Lisk and the resulting loss.

Lisk Basics

Here are some factors that investors should consider before investing in Lisk.

Cryptocurrency Features	Lisk (LSK)
Publisher or Developers	Lisk Foundation
Headquarters (Registration Number)
Symbol	LSK
Platform
Published Date (CMC Registration)	2024-11-01
Max Supply	400,000,000 LSK

Reliability Score of Lisk in 2024

These are indexes mesuring the investment reliability of Lisk conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 5 Exchanges
Number of Available Pairs Worldwide	127 Pairs
Market Cap of the Cryptocurrency	208,579,576 USD (Rank #200)

The table above shows the result of investment suitability evaluation for Lisk.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Lisk Price

Here are the price and recent trading volume of Lisk. (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Lisk
Lisk Price	0.780 USD
Price Change 24h	-0.28%
Price Change 7d	-2.72%
Trading Volume 24h	2,661,792 USD
Trading Volume Change 24h	-9.68%

Cryptocurrency Metadata

You can check the development status and social media information of Lisk through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Lisk

Here are the top ten world crypto exchanges where traders can buy Lisk in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Listed	https://www.binance.com/en/trade/LSK_USDT
Coinbase	Not listed
Kraken	Not listed
KuCoin	Listed	https://www.kucoin.com/trade/LSK-USDT
Bitfinex	Not listed
OKX	Listed	https://www.okx.com/trade-spot/lsk-usdt
Huobi	Listed	https://www.htx.com/trade/lsk_usdt
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Listed	https://www.gate.io/trade/LSK_USDT

Frequently Asked Questions