Lisk cryptocurrency differs from similar products in the mining method and simplified application generation technology. The project capitalization is $165,000,000. The estimated rate of lisk is $1.21 (according to coinmarketcap). The daily trading volume reaches $3,000,000. The market provides access to operating $13,460,0000.
A detailed review of cryptocurrency, which is presented in this article, will reveal information about who developed the project and what the principle of its operation is. After reading the information, you will understand where you can buy Lisk, how to store and increase coins, whether there are prospects for the new version of the cryptocurrency, and whether it is relevant to invest your funds in it.
Lisk cryptocurrency review
Lisk is a decentralized platform whose capabilities are focused on creating applications on smart contracts. It can also be used as a payment system designed for exchanging valuable objects within the system.
The functionality of the service allows developers to generate simple applications, which sets it apart from similar offerings from competitors. These properties are due to the use of SDK tools in the project. All of them are displayed in Java Script code.
Working in the system, developers have the opportunity to create blockchain applications using the sidechain principle, which implies the absence of dependence on the main LSK block chain. With this approach, in case of problems there will be no network failures.
LSK price change
Differences from Bitcoin
The Lisk service for applications uses a distributed network based on blockchain. A simplified version of sidechains is also used. These factors are the main difference between the Lisk cryptocurrency and Bitcoin.
Differences from Ethereum
The main differences between cryptocurrencies are reflected in the table.
| Factor | Lisk | Ethereum |
| Application names | Blocking | Decentralized |
| Programming language | JavaScript | Solidity |
| Application storage method | Side chains | Main circuit |
| Virtual machine | Absent | EVM |
| Bid confirmation method | DPoS | Proof-of-Work, plans to switch to Proof-of-Stake |
| Problem solving | Creating a Sidechain Fork | Errors cause a waste of a transaction, since the service is launched on a virtual machine and all failures in the system are due to a problem in its functioning. |
Mining tokens
Only the active delegate has the right to mine coins of the platform in question. To obtain this status, you need to credit 100 LSK to your account within the system. The future miner must also receive votes from other users.
Based on the voting results, the platform publishes the rating of all participants. Active delegates who take positions from 1 to 101 receive the right to become miners. These users can create their own pools and begin mining tokens by processing transactions within the blockchain. The mined cryptocurrency is distributed between active delegates and those platform participants who supported them in the vote.
Users who occupy weaker places in the ranking receive the status of passive delegates. To become miners, they need to improve their positions, overtaking more successful users from the mentioned list.
This organization of coin mining is called “forging.” According to many experts, this method is the most democratic. However, for many users this scheme looks unusual. Therefore, most platform participants purchase tokens from exchangers and specialized exchange platforms.
Basic terminology
| Name of the term | Interpretation |
| Public key | Wallet number interpreted as transaction details |
| Private key | Access code to your personal wallet account, the functionality of which allows you to process financial transactions |
| Seed phrase | Access recovery phrase |
| ICO | A form of cryptocurrency crowdfunding, the essence of which is the sale of coins before they enter the market. |
| Crowdfunding | The procedure for attracting investments necessary for the development of the project |
| Capitalization | The cost of all coins in the system |
| Decentralization | Lack of a single command and control center in the system |
| Mining | Generating new coins |
| Roadmap | Roadmap representing the development plan for a cryptocurrency project |
| Tokens | ICO elements that look like a gadget, the functionality of which is focused on user identification |
| Sidechain | An additional feature of the main blockchain that allows:
|
| Smart contracts | An algorithm for making secure transactions without the participation of intermediaries. It takes into account:
|
| Blockchain | Technology for recording and distribution of information storage, which involves copying and synchronizing the database according to a given algorithm. |
| Block | Blockchain link |
| Forks | Coins as a result of the project’s activities |
| Delegate | The account of a user registered in the system, who has paid for the status and received participant votes, allowing him to make a certain number of decisions. |
Crowdfunding
As mentioned above, the collection of investments for the development of this project lasted no more than a month and during this time funds equivalent to 6 million dollars were collected.
Such a high result brought Lisk into second place, after Ethereum, which managed to raise as much as $18 million during the ICO. During the month of fundraising, 100 million new crypto coins were sold and, thus, the cost of one Lisk was 6.7 cents.
85% of all coins went to crowdfunding participants, 8% to the authors of the project, another 4% went to advertising and bonuses, 2% went to partners and consultants, and 1% to charity.
History of creation
The Lisk cryptocurrency first became known in 2016. Its creators are members of the Ethereum project led by Mark Kordek, who separated from their team. During the first month of their activity, they conducted crowdfunding and ICO, which resulted in $6,000,000 on their balance sheet. The team entered into an agreement with Microsoft Azure, which took upon itself to launch the integration of the system and provide developers with the opportunity to use the tools.
In the first months of operation of the decentralized application, investors became interested in the new cryptocurrency, whose earnings strategy is focused on working with new projects that allow them to receive income from early investments. Venture capital investments came from hedge funds and private investment companies. Assets at the initial stage of activity were distributed as:
- investor contributions – 85%;
- founders' investments – 8%;
- promotion and marketing - 4%;
- payment to partners;
- charity – 1%.
Its success is due to the unique technology of the project, focused on an innovative approach to application programming. Its functionality immediately became of interest not only to direct crypto users, but also to large business entities. Investors' attention was also attracted by the possibility of using the Lisk cryptocurrency platform through the Microsoft Azure service.
Key aspects of Lisk
Features of the Lisk cryptocurrency that distinguish the product from similar applications are:
- use of sidechain technology;
- creating a block in the system with a frequency of 10 seconds;
- confirmation of the transaction by the decision of elected delegates;
- financial transaction time 17 minutes;
- transaction fee 0.1 LSK;
- application of the DPoS algorithm;
- platform's use of Java Script;
- involvement of side chains;
- promoting and providing technical support through the Country Ambassador program;
- a delegation system formed by 101 unique users, each of whom can make new proposals by majority vote.
How to mine?
The coin works on the DPoS algorithm, which means it cannot be mined on video cards (GPUs) or ASICs.
However, you can mine coins, but with very big conditions.
Only a few can mine LISK coins. Only 101 people are allowed to mine. These participants receive the status of "delegates".
How to become a delegate? You must register in the system and download the Lisk wallet. Please note that registration to obtain this status is paid.
Coin mining
Important: coin mining in the new product differs from traditional mining and is carried out using the forging method. It is based on the DPoS delegated proof algorithm. It assumes that actions and decisions are made through the operation of delegates.
The essence of the forging algorithm is the right of each network user to vote for a specific participant previously registered as a delegate. His responsibilities include mining blocks and facilitating operations.
To obtain this status, you need to register on the network, pay 25 LSK and receive a majority of user votes. Each of them receives one coin for their actions. Delegates occupying positions 1-101 are classified as active, while the rest have passive or reserve status.
Selected individuals create private pools and mine coins, 95% of which are subsequently distributed among participants. When determining the payout amount, the share of cryptocurrency ownership of each user at the time of the financial transaction is taken into account.
The generated block used to be paid for in coins. However, due to the growing complexity of the process, prices are decreasing. It is planned to set the payment amount to one coin per block.
Tools used
Lisk-Js and Lisk API.Lisky tools are used to create applications that are flexible and decentralized . One of them is a JavaScript library. Its functionality ensures the generation of transactions offline and implements them into the network. The second element provides communication with the main nodes of the system.
What prevents Lisk from developing faster?
Lisk is a young project, it has existed for less than three years and has not yet managed to rally a wide user audience around it. Perhaps the community would be larger if not for the virtual absence of mining. Only delegates can receive rewards on the Lisk network, the number of which is limited to 101 people. In such a situation, there is a danger of network centralization. The developers have repeatedly promised to adjust LSK production, but have not done so yet.
In general, the development of the project is quite slow, although the team’s efforts cannot be ignored. But since the project has not yet demonstrated its full power, hence the insufficient volume of investment, and, as a result, a decline in the exchange rate of the lsk in relation to fiat and even some cryptocurrencies. But all existing shortcomings are not critical. Whether they will be neutralized should become clear by the end of this year.
How to make money on Lisk
Important: On the stock exchange you can earn Lisk through speculative operations aimed at buying or selling an asset and making a profit due to price fluctuations in quote values. It is also possible to conclude a contract for the purchase of a binary option, indicating in it the conditions under which the bet will be profitable and the expiration time.
To make a profit using such schemes, you need to learn how to predict market behavior and model your own trading tactics based on technical and fundamental analysis. When working with an asset on the financial market, its value is determined by the number of quote points by which changes have occurred. The amount of earnings in the field of binary options is determined by the bet, but the amount will be credited to the account only if the trader correctly predicted the market mood and the terms of the contract are met.
According to analysts' recommendations, you can make good money in the long term by purchasing a financial asset. Fundamental factors are driving cryptocurrency value growth throughout 2022. The relevance of purchases can also be judged by the readings of elements of technical analysis.
In the short term, it is recommended to evaluate the asset’s chart on lower timeframes and use the tactics of pending orders, which allows you to make profitable purchases at local lows and sales at highs. When making decisions you should trust:
- indicator readings;
- candlestick chart combinations;
- emerging graphic patterns;
- wave structure of the price chart, by which one can judge the stage of market development.
When making a forecast, a trader should take into account published values of economic indicators and news. Important events give the asset volatility, and previously made forecasts may not come true.
How much will lisk cost in 2019?
In December 2022, the Lisk team brought to the attention of users its plans to change the financial strategy of the project. In his next address to the Lisk Today community, Kordek announced the upcoming diversification of the company’s cryptocurrency portfolio in connection with the prolonged crypto winter. In particular, about the intention to exchange part of the cryptocurrencies for Swiss francs in order to “find a balance between stable and volatile assets” and thereby protect them from possible downside risks.
Kordek assured investors that the company’s portfolio would remain 3 thousand BTC, as well as every single lisk coin, in the bright future of which the founders continue to believe. But in addition to this, the company will receive 12 million CHF - a fiat currency that is considered the most reliable in the world. This will ensure financial stability and allow current issues to be resolved, in particular, the release of the long-promised application.
In general, the community accepted this decision with understanding - as a kind of “safety cushion” for LSK, a way to get through difficult times.
“Perhaps it makes sense to sacrifice a little of the main crypto idea to ensure the protection of your small ecosystem. And the guarantee of security will be the banknotes of the country with the most reliable banking system in the world,” investors write on social networks.
The Swiss National Bank is a recognized symbol of financial stability.
Let's give some forecasts for the lsk cryptocurrency for 2022. Experts from the site Сryptoalien believe that the crisis in the cryptocurrency industry will continue for a long time. Accordingly, their forecasts for 2022 regarding the vast majority of projects are not encouraging. They predict that the Lisk coin will fall to $0.654 by December of this year. The gradual restoration of lost positions, according to Cryptoalien, will begin no earlier than 2024.
Among adherents of the opinion that the trend in the cryptocurrency market will soon change, opinions are completely different. Highly appreciating the technological potential of LSK, they predict significant growth for the coin - from $10 to $50.
Where to store Lisk
It is convenient, but risky, to store an asset on an exchange. If you have large savings, it is better to keep coins in the wallet of the project developers. To do this you need:
- go to the “Products” menu from the main page of the site;
- select an application appropriate for the task;
- download the program and install it;
- launch the service;
- Enter data in the identifier field.
An easy-to-use wallet is Lisk Nano . Its functionality is supported by most types of operating systems. The advantage of the service is its intuitive interface, which is successfully combined with its versatility. It does not need to be synchronized with the network’s blockchain, which speeds up the application and reduces its weight on the hard drive of a personal computer.
By selecting the Lisk Hub , the user can manage the ID, access to it and sending tokens. He also gains access to voting for delegates. The functionality of the service allows you to mine cryptocurrency, as well as collect it from free lisk faucet .
To make transactions using the Lisk wallet, you must enter the Lisk address in the program field. It represents sequential icons - symbols displayed in a specific order. Only the correct identification of the identifier can guarantee that money will be credited to the account.
How to create a Lisk wallet
The main wallet for working with the platform is the “light” client Lisk Nano. It is installed on the user’s computer and does not require downloading the blockchain to make transfers.
You can download the Nano wallet for Windows, Mac or Linux in the “Download” section on the project website.
The program is installed automatically, after which an authorization window opens. To create a new wallet, click the “New Account” button.
In the window that appears, select “Next”. In the next step, you need to make random movements with the mouse until the indicator bar is filled with blue. This is necessary to generate a unique wallet encryption key. To complete the procedure, click “Next”.
The program will display the generated passphrase, which you need to save in a safe place or write down on paper. The phrase serves as a password to access the wallet. Important: if you lose your passphrase, you will not be able to access your funds.
In the next window, you must enter the missing word to confirm the presence of the recorded passphrase.
After clicking on the “Login” button, the main program window will open, which displays the transaction history and current wallet balance. To find out your address, you need to click on the “Receive LSK” button.
A window will open containing the text wallet address and QR code. You can copy the address to the clipboard by clicking the “Copy address to clipboard” button.
Transferring funds to another user is carried out using the Send button. To make a transfer, you need to enter the recipient's wallet address and the amount to be sent.
Types of wallets
There are several types of Lisk wallet:
- hardware;
- desktop;
- mobile;
- online;
- browser extensions.
Hardware
A hardware wallet typically holds large amounts of money because the information may be stored on computer equipment that is not connected to the Internet. The wallet data can be transferred to a flash drive and hidden in a safe. They contain a personal key cipher used as a digital signature.
The following hardware wallets are considered reliable:
- Leaders;
- KeepKey.
Desktop
Users without experience in operating crypto wallets should choose their desktop version. It uniquely combines ease of creation and a high level of protection. Exodus is popular, its functionality includes exchanger options and control of private keys. Its disadvantage is that it only supports eight types of currencies. If the user is interested in their expanded list, then you can use the Jaxx service, which supports handling 26 currencies.
Mobile
Mobile wallets are created on mobile devices. Almost all payment services support Android and iOS operating systems. The security of the product is increased due to the enabled seed phrase option.
Online wallets
Popular online wallets are Holy Transaction and Criptonator. They are characterized by simplicity and ease of use. The level of protection in the service is higher than that of hardware wallets.
Browser extensions
Simple and hassle-free payment systems in the form of browser extensions have a high level of security, which is explained by the option to control cash flow using seed-phrases.
Users usually choose Jaxx or Leader, which have such a service in their list of services.
Prospects for Lisk
It is difficult to predict the development of the Lisk cryptocurrency sphere, since the technology for its functioning is recent. Its value depends on the developers, who are faced with the task of turning all their plans into reality, which will help compete with Ethereum.
Factors influencing project progress
The asset has good growth potential, and the project itself looks viable and promising. Its development depends on a number of factors:
- Lisk Core 1.0 release;
- team work coherence;
- competitors' activities focused on sidechain technology;
- promotion of the project, since most users currently do not perceive the new technology and therefore do not show due interest.
The project is aimed at those users who are involved in its development. The project could become a standard for decentralized blockchain-based services. Such functionality will ensure the possibility of its integration into such target projects as:
- computer game;
- social network;
- business plan;
- website.
Smart contracts can be used to create the structure of Internet projects that are expected to be launched in the near future.
New options will allow users to create, publish and earn income from their application.
roadmap indicates that Lisk does not belong to the category of classical digital currency, which can be used to pay for goods and services on the Internet. Cryptocurrency will not be accepted for payment, despite the fact that its capitalization is high compared to other projects.
Professionalism of developers as a guarantee of success
You can judge the prospects of a project by the professionalism of its developers. They understand all aspects of cryptocurrency and have experience working with similar projects, which allows them to take into account previous mistakes. With this approach to the functioning of the system, it can be predicted that its coins will become more popular and expensive than Ethereum.
The developers have good reason to believe in the success of the project, but its future is directly dependent on their efforts. Their task is to solve problems in the functioning of the service.
What can slow down development
Any elements and services of modern technologies that brought profit and fame to the creators are copied by followers. New versions of the project are modified with a focus on improving the parameters and characteristics of the basic reproduced analogue. Creators of copies always strive to present the product to users in a more attractive form and with an expanded set of functions than in the original version. Therefore, in the near future we can expect the emergence of a new project based on Lisk.
Lisk cryptocurrency rate and forecast
Considering the technology and its prospects, it is too early to make predictions about this cryptocurrency.
The fact is that the project can hardly be called completely finished. But even today it is clear that the coin has prospects. At the moment, its rate is almost $12. At the same time, the capitalization of the token is $1,187,242,446. But the Lisk rate may rise. This already happened in January 2018, when the price of the coin reached almost $35. And there was another jump in February of this year. Then the price rose to $32.
As for the forecast for the Lisk price, it seems that the price is not showing rapid, but stable growth. And the basis for this growth is formed by the fact that developers have already managed to evaluate the advantages of the platform over Ethereum smart contracts, due to the lack of scalability here. Therefore, many experts claim that throughout 2022 the price of the coin will rise and reach $120.
Advantages and disadvantages
Before investing your own funds in the Lisk project, you should evaluate the advantages and disadvantages. The advantages include:
- professionalism of developers;
- use of innovative technology for the operation of the application;
- open source code that allows you to supplement and improve the project using Github;
- backup storage of coins;
- mining according to a new scheme;
- Regular improvement of applications and project functions.
The disadvantage of the project is its young age. Among the shortcomings, one can also note the instability of the site’s functioning.
What does the company/project do?
Lisk is a Blockchain application platform created in early 2016.
Based on the native Blockchain network and LSK token, the platform will allow developers to create, distribute and manage Blockchain decentralized applications by deploying their own sidechain linked to the project network, including a custom token. With the flexibility of sidechains, developers can fully implement and customize their Blockchain applications.
Lisk is a cryptocurrency and platform for decentralized applications. As a cryptocurrency much like Bitcoin and other cryptocurrencies, it provides a decentralized payment system and digital money network.
The network itself operates using a highly efficient delegated proof-of-stake (DPoS) model, secured by 101 democratically elected delegates.
Lisk is also a decentralized application platform that allows the release, distribution and monetization of decentralized applications and specialized blockchains (sidechains) on the Lisk blockchain.
Lisk allows developers to create and publish chained applications with their own connections. It is an open source platform.
Lisk was announced in early 2016. The first release occurred in May 2016, when it was forked from Crypti by founding developers Max Kordek and Olivier Beddows.
Lisk, like other blockchains, has its own currency within the platform, LSK.
Lisk is often compared to Ethereum. Both Lisk and Ethereum are blockchain-based platforms that allow developers to create applications.
The platform allows developers to create “blockchain applications” by creating a link to the Lisk blockchain, while Ethereum allows developers to create “decentralized applications” in a virtual machine on the main Ethereum blockchain. There are other differences which we will discuss below.
Lisk is built on Delegated Proof of Stake (DPoS), originally created by BitShares. Lisk differs from regular PoS blockchains in that only the top 101 delegates (determined by popular vote) actively “maintain” and ensure the security of the network.
The Lisk DPoS protocol operates through a series of rounds, with each round consisting of 101 individual blocks.
