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 has signed an agreement with Microsoft to integrate Lisk with the Azure Blockchain as a Service (BaaS) program. This means that developers around the world can develop, test and release applications for the Lisk blockchain using the cloud computing platform and Microsoft Azure infrastructure.
How to earn 15,000% profit in six months
During the 2022 market rally, the cryptocurrency was able to grow by 15,000% . At the same time, the coin began trading in January 2022 at a price of $0.16, and at the end of December its value reached almost $24.
Cryptocurrency Lisk (LSK) increased by 15,000%
Moreover, the growth of the currency did not stop there; at the beginning of 2022, it continued to update its maximum capitalization and value indicators.
Lisk cryptocurrency is a rather interesting project with a simplified technology for creating decentralized applications. Lisk may become the main competitor of Ethereum in the future. That is why today we decided to take a closer look at this digital asset and write a complete review of the Lisk cryptocurrency. From it you will learn about the history of the creation of Lisk, the development team, what the operating principle of this system is, what its advantages/disadvantages are; differences from other platforms where you can buy a coin, how to store it, as well as what prospects the LSK cryptocurrency has for 2022 and whether it is worth investing your money in it.
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.
Cryptocurrency Lisk (LSK)
In the coinmarketcap.com ranking, Lisk is currently ranked 23rd. The capitalization of this project is almost 400 million US dollars ($395 million), the price of one coin fluctuates around 3.55 - 3.59 US dollars. Lisk's daily trading volume is $8.72 million. The total emission of the cryptocurrency is 125,440,256 LSK, currently 110,201,130 LSK are available on the market. It is noted that Lisk cannot be mined in the traditional way.
- Coin ticker: LSK
- Official website: https://lisk.io
- Twitter https://twitter.com/LiskHQ
- Reddit page https://www.reddit.com/r/Lisk/
- Discussion of the project on the Bitcointalk forum
- Lisk Blockchain open source on GitHub
Lisk coin growth history
After the release of the coin on the digital market (LSK coinmarketcap.com statistics have been kept since April 2016), the value of Lisk remained virtually unchanged for 1 year. However, after mid-April 2022, this digital currency began to actively grow. As a result, over a relatively short period of time (mid-April-early September), the cost of one coin increased by 4,000%.
Afterwards, the total capitalization and value of Lisk digital shares only increased, until the first half of January 2022. It was then that the maximum price of LSK was fixed at 32 US dollars (on exchanges the price fluctuated around 38-40 US dollars per piece of Lisk).
Lisk takeoff dynamics (LSK)
After the global uptrend of the cryptocurrency market ended and a rapid correction began, the Lisk Blockchain project continued to resist it and maintain its price position at high levels. Until mid-February of this year, the value and capitalization of LSK continued to remain consistently high even despite the general downward trend.
As a result, the Lisk project also succumbed to a general correction and now the value of the company’s digital assets has fallen by 900% compared to the beginning of the year. At the same time, those users who invested their funds in Lisk from the very beginning of January until mid-2022 are still in the black .
I would also like to note the fact that the LSK cryptocurrency could really resist the correction and not succumb to it for such a long time. This means that Lisk has strong support both among strategic investors and among its entire community, which includes millions of system users and a dedicated development team.
Capitalization and LSK rate
After LSK was listed on the largest exchanges, its price did not exceed $1. This lasted until May last year, when the leaf broke through this mark and began to grow.
By the fall of 2022, it was already worth $8 and then took barrier after barrier.
LISK experienced its peak value on January 7, 2022. Then the LSK rate jumped to $38.4.
Then a correction occurred and now the Lisk is trading around $25.
Capitalization behaved in a similar way. At first it fluctuated around $30-40 million. At the end of spring 2022, it jumped to $100 million and continued to grow. By January 7, 2022, LSK’s capitalization reached $4.4 billion, but after a correction it rolled back to $3 billion.
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How Lisk was created. ICO project
Lisk officially launched in 2016. At that time, the company's founder, Max Kordek, decided to create his own platform for developing decentralized applications. For this purpose, it was decided to raise funds through an ICO. As soon as Lisk was announced, the company immediately became interested in many investors who wanted to profit from early investments in the project.
The result of the ICO was the collection of funds in the amount of 6 million US dollars (which is equivalent to 14 thousand bitcoins ). A total of 100 million LSK coins were distributed during the ICO, the sale was carried out at a price of 0.6 US dollars.
At that time, the company's assets were distributed as follows:
- 85% are investors;
- 8% went to the company's founders;
- 4% of coins went to the development and marketing of the project;
- 2% went to advisors and partners who also contributed to the development of Lisk;
- 1% for charity.
In 2016, Lisk ICO was considered one of the most successful. Only Lisk’s competitor, Ethereum, was able to raise more (about $18 million). In May 2016, the Lisk cryptocurrency was already able to get onto the trading list of the best cryptocurrency exchanges and become one of the most sought-after assets on the market.
Lisk to the moon
Success is ensured by the project’s unique technology, based on an innovative approach to application programming, which almost immediately attracted not only crypto users, but also large companies and businessmen. For example, at one time Lisk was able to agree on cooperation with Microsoft . All participants in this system were able to use the LISK platform through the Microsoft Azure service.
Investing in cryptocurrency - is it worth investing?
- The LSK coin is mainly used as a tool to run applications based on blockchain technology. Cryptocurrency is not used to purchase other assets, like other digital money, primarily BTC. This suggests that the coin rate is unlikely to reach a level of several thousand USD;
- At the same time, experts say that the popularity of the platform among large companies building their business on the basis of blockchain can increase significantly. In this case, the coin rate will naturally increase significantly;
- Just six months ago, such a scenario was perceived as unlikely. After signing a contract with Microsoft Corporation, serious prerequisites appeared for popularizing the platform among Internet developers;
- Compared to other digital currencies, LSK stands out due to its mathematically based exchange rate dynamics. Signs indicating the presence of a pump have never been seen in changes in the price of a coin;
- The token rate almost exactly corresponds to the Elliott wave theory. Many experts believe that such behavior of the chart indicates the absence of any manipulations with the price of the coin;
- Lisk is a long-term project. The development of the platform may reach its peak only after a couple of years. This means that users can use two options to earn money from this coin: trading and investing. The first involves making short trades. The second means purchasing a token for cold storage purposes for subsequent sale at the peak level of its value.
Experienced investors advise allocating no more than a fifth of the cryptocurrency portfolio to the coin in question. Several more similar platforms should start operating soon. This may somewhat weaken LSK's position in the market.
Great article 3
What is Lisk?
Lisk is a decentralized platform for creating applications on smart contracts, which can also be used as a reliable payment system for exchanging value within its blockchain.
Lisk allows third-party developers of blockchain projects to make applications in a simpler, more stable and flexible way, unlike other competitive dApps platforms. The developers were able to achieve this by using a special set of tools for creating decentralized applications. This group of tools is called Software Development Kit or SDK .
The SDK is written in Java Script code. Almost every participant in the LSK system can use this programming language, so there should be no problems using the Lisk platform (at the same time, Ethereum uses a special programming language, Solidity, which in any case has to be taught to users of the system).
Lisk also allows developers to create the blockchain of their application using the Sidechain principle, that is, it will not depend in any way on the main LSK blockchain. This will not allow, in the event of an error or failure in the network of one or another dApp, to harm the main Lisk blockchain. In essence, this platform can be thought of as an infinitely scalable system that can constantly work properly and create a huge variety of decentralized applications.
Thus, Lisk allows platform participants to create unique decentralized applications using a basic programming language and any algorithm. It is precisely because of this flexibility of the system of this project that many investors prefer to use LSK rather than any other analogues.
Advantages
The project is based on a blockchain with a branched structure.
Branches belong to different areas of the project, and they are formed after the emergence of a new area. This interesting approach helped reduce the load on the blockchain. The lisk cryptocurrency provides all the necessary information in branches, which not only maintains the speed of the network, but also makes storing data a simpler and more understandable process. Due to the fact that Coin Lisk uses a similar development, all transactions take place without the participation of the underlying blockchain. Based on this, the problems inherent in the blockchain due to the complication of crypto mining and the increase in commissions will be eliminated.
The simple structure of Lisk is a good basis for creating decentralized software tools. The development team of this digital platform is focused not only on developing relationships with the user audience, but also on getting closer to third-party developers, which will subsequently help accelerate the growth of Lisk’s popularity among the mass user.
The number of experienced programmers involved in the development of the project is truly surprising. The development team always works as usual, which sets lsk apart from its competitors. The entire process of finalizing the cryptosystem takes place at headquarters, and not through the interaction of programmers working remotely.
How Lisk works. DPoS algorithm
The Lisk network operates using a highly advanced DPoS (delegated proof) algorithm that allows the system to reach consensus using delegates. The essence of this algorithm is that each user of the Lisk network can vote to select one or another participant, called a delegate, who, in turn, will help the network carry out transactions and mine new blocks.
In total, the Lisk blockchain has 101 delegates, and every user, without exception, can become a delegate. You just need to collect the required number of votes from the rest of the system participants. If the user is not included in the list of delegates, then he is sent to the reserve, where he can be elected next time or if necessary.
Sidechain technology in addition to blockchain
Today, many have already heard about blockchain technology, which is often compared to distributed accounting with information about all completed transactions. One of the main disadvantages of blockchain lies in the fact that it is still quite possible to overload it with artificial transactions. With a large influx of spam transactions, blocks are filled much faster, which subsequently slows down the network. Tell me, which of you will enjoy working with a slow network?
So Lisk is intended to be a solution to this problem. Sidechains are something like an addition to the main blockchain. Does everyone remember the Velcro that is glued to pages for notes? Roughly speaking, the system provides the opportunity to enter additional information without interfering with the main text. You can attach sidechains to independent blockchains and then place high-volume transactions on them. Overall, this will keep the network running fast. Richard Brown will tell you more about sidechains.
Lisk Platform Tools for Developers
Basically, the Lisk system includes 2 main tools that you can use to create your flexible decentralized application:
- Lisk-Js (a JavaScript library. It makes it possible to perform offline transactions and distribute them online; it also supports developer interaction with the system core, which is called List Core);
- Lisk API.Lisky (mainly provides efficient communication with Lisk nodes).
What is the difference between Lisk and Ethereum?
Lisk and Ethereum are often compared to each other. Both platforms are blockchain-based systems that attempt to expand on the original idea of the Bitcoin blockchain by creating decentralized applications.
While Ethereum calls its applications "decentralized applications" or DApps, Lisk calls them "blocking applications."
Other key differences between Lisk and Ethereum include:
- Lisk uses a consensus matched equity (DPoS) algorithm; Ethereum will eventually move to PoS consensus, but currently uses PoW
- Lisk uses JavaScript as the application language, while Ethereum uses Solidity
- Lisk uses sidechains to store applications, while Ethereum stores applications on the main chain
- In Lisk, application problems require developers to hard fork their sidechain; on Ethereum, applications run on a virtual machine, so any errors result in wasted transactions, but they are contained in the virtual machine itself
- Lisk does not have a virtual machine, while Ethereum has its own Ethereum Virtual Machine (EVM)
Features of the Lisk cryptocurrency
Summing up some results of studying the LSK project, we can highlight the following features:
- A block in this system is created every 10 seconds. Transaction confirmation occurs almost immediately (this requires 6 delegates to confirm the transfer). The maximum time for a financial transaction (with the participation of 101 delegates) is no more than 17 minutes.
- The transaction fee is 0.1 LSK.
- The system is based on a more advanced DPoS algorithm , rather than the common PoW.
- Java Script programming code . Lisk uses Blockchain sidechains to store data about previously created decentralized applications in the system, which allows it to remain stable and reliable.
- Having a set of tools for creating decentralized applications SDK, which mainly consists of 2 key parts: Back-end (custom code for developers to create DApps) and Front-end (user interface).
How to mine
The LSK cryptocurrency can be mined, but this is done using the principle of delegated proof of stake. This means that coin mining is carried out only by a number of selected users. In this case, mining is allowed only to 101 delegates. Only this select number can receive the mining reward. But they also share transaction fees among themselves. So if you want to mine cryptocurrency, first of all you need to enter this “hundred”.
LSK coins need to be mined in a way that is a little unconventional for cryptocurrency - using forging. In this case, the PoS algorithm is used - proof of storage. That is, if 101 delegates are engaged in mining, then the rest of the network participants can only choose these delegates. But voting is not a free procedure. Each participant receives one coin for their vote.
Then the delegates create their own pools and engage in mining, sharing not only the reward, but also the difficulty of mining. Therefore, the advantage is obvious - users do not have to buy expensive equipment. You just need to participate in the delegate pool. And the distribution of loot depends on the initial number of coins stored in the wallet. If there are a lot of coins, then the reward will be greater.
The procedure looks like this:
- 95% of the amount is distributed among the pool participants;
- When launching the platform, for 1 block the pool receives a reward of 5 Liskov (the size decreases until it reaches 1 coin).
To become a delegate, you need to create a special paid account. There are just two types:
active;- passive.
There can only be 101 active ones, but the number of passive ones is unlimited. To switch to active status, you need to get as many votes as possible from users. Each person has the right to cast only one vote, no more.
Development team
Lisk was founded by Max Kordek (Twitter) and Oliver Beddows (Twitter). They were the ones who were able to create Lisk as it is now.
Max Kordek
Max Kordek was born in Germany in 1991. At that time he was studying at the Technical University of Aachen (RWTH Aachen). After graduating, it occurred to him to create his own blockchain project, which he called Lisk.
Also playing an important role in the team are advisors C. Hoskinson (former CEO of Ethereum) (Twitter) and S. Nerayef, a well-known specialist in the field of venture investments. Both of them made significant contributions to the development of the Lisk platform in their time.
In general, the project team differs from all other communities in its friendliness and constant contact with its community. For example, monthly live broadcasts are held on YouTube, where developers answer questions from viewers.
Lisk Development Team (LSK)
In total, the team consists of about 23 experienced specialists hired through Lightcurve (a Berlin-based blockchain consulting company). It is worth noting that the Lisk community is constantly growing.
Where to buy cryptocurrency Lisk (LSK)
You can buy Lisk cryptocurrency on many well-known exchanges that currently exist on the market. An example of such trading platforms that support LSK are trading platforms:
- Binance
- HitBTC
- YoBit
- Huobi
- Poloniex
- Bittrex
The largest trading volume for the Lisk coin is observed on the YoBit (total daily trading volume of LSK/BTC is about 2.6 million US dollars). Be careful with this exchange as there are many clones of famous coins. Read more about this here.
A complete list of trading platforms that sell Lisk in a variety of currency pairs can be found on coinmarketcap.com in the “Markets” section.
On which exchanges is LSK traded?
The first placement of this cryptocurrency was carried out on the international exchange YoBit. The most active period was the first days of trading, during which the value of Lisk increased threefold. Those who bought the new cryptocurrency at the initial price could literally sell it at exorbitant prices two days later.
Gradually, the number of platforms where this cryptocurrency could be purchased began to increase. Today, the largest volumes of Lisk (LSK) trading take place on Poloniex. In addition, Lisk is also traded on Bittrex, BloomBit and Livecoin. It is impossible to buy Lisk for rubles. To do this, you first need to buy dollars or bitcoins for rubles, and then exchange them on the above exchanges for LSK.
Mining Lisk
The Lisk developers decided to build a blockchain platform not based on the PoW algorithm, on which most cryptocurrencies (including Bitcoin) are based, but on DPoS, which allows delegates to mine new coins in this system, maintain the network and process transactions.
Here, each user can vote for the appointment of one or another network participant as a delegate, receiving 1 LSK coin for this. And those who become a delegate will be able to create their own pools and directly mine Lisk, as well as receive a portion of the profits from system transactions. To become a delegate, you need to register online (registration fee is 25 LSK), and then vote as a voter.
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. |
Lisk storage wallet
Like all other cryptocurrencies, Lisk can be stored directly on exchanges, but this storage method is the most risky (albeit quite convenient). The fact is that only the developers of the trading platform have private keys to the wallet. That is why if you have large accumulations of Lisk, then it is worth considering safer options for storing this coin.
The best option for storing Lisk is to use official wallets from the developers of this project (they have already created several versions of wallets). You can find them on the company’s official website by going to the “Products” section on the main page. There will be several Lisk apps that you can use to store/send LSK coins.
The oldest, but fairly simple wallet is the Lisk Nano , which is located at the very bottom of the screen (download link). At the moment, it can be used by users of Windows, MacOS and Linux systems.
Official Lisk storage wallet
Its advantage is a very simple and intuitive interface that can be used by both experienced and novice users. This wallet is also distinguished by its wide functionality (for example, you can participate in the selection of delegates). Using Lisk Nano, you will not need to sync with the entire LSK network blockchain. This, in turn, makes it possible to significantly speed up the operation of the application, as well as reduce its overall weight on the PC hard drive.
Another Lisk storage app option is Lisk Hub . This is a newer version of the wallet that was created during the relaunch of the Lisk network. This application works on Windows and MacOS systems. Moreover, it is not just a wallet, but a special management system that allows you to manage your Lisk ID, access and sending LSK tokens, as well as voting for delegates.
In general, Lisk Hub can be called “all in one”. This is basically its advantage. In the future, the developers also want to introduce decentralized exchange (DEX) capabilities, sidechain registration, and the ability to launch your own ICO . Using Lisk Hub, you can also start mining Lisk cryptocurrency. You can download it on the official community page on GitHub.
You can also find several more Lisk storage applications on the official website.
Prospects for Lisk
The Lisk cryptocurrency is a fairly promising asset that will most likely continue to develop successfully in the digital world. Its feature, for which investors prefer the Lisk project rather than Ethereum, is the platform’s ability to create simpler and more advanced decentralized applications. Each developer can customize their dApp any way they want using a simple Java Script algorithm. Also here, each application is in no way dependent on the main Lisk blockchain, which allows the entire system to work properly and not be overloaded.
At the same time, Ethereum currently has many problems. An example is the special programming language Solidity, which not every developer knows. As well as frequent overloads of the Ethereum blockchain caused by a huge number of transactions and applications.
The feasibility of investing in LSK
As the authors of the Lisk project say, they have set themselves the main task of expanding the audience of users, which in the future should give impetus to the growth of the Lsk coin rate. Since this coin’s competitor is Ether, which has a number of scalability and security problems, the creators of Lsk began to conduct a large-scale advertising campaign to provide users with information about the benefits of their technology.
If crypto market participants appreciate the advantages of lsk, then this coin will have every chance of entering the TOP of the largest and most popular cryptocurrency payment instruments. After the end of the ICO, one can observe a gradual increase in people’s interest in Lisk. As research by analysts shows, lsk is now one of the most interesting young crypto assets for potential investors. Thus, this coin has all the components for further exchange rate growth and expansion of the number of users.
The Lisk project and its digital coin are a tool for decentralized application creators. The size of the capitalization of this site will increase with the growing demand for the tools it offers among programmers. Despite the fact that this coin is decentralized, it retains the volatility characteristic of cryptonets. Based on this factor, the likelihood of exchange rate jumps and falls at any stage of the development of this digital currency remains.
It is still difficult to assess the feasibility of this type of investment. This is due to the fact that the youth of the Lisk does not allow experts and analysts to identify patterns that affect cryptocurrency quotes.
Users who want to purchase LISK with the aim of making subsequent profits due to the growth of coin quotes should understand the specifics of investing in crypto assets. Such investment instruments can bring good profit in a short time or depreciate. Therefore, financial investments in crypto should be made only after an independent analysis of the current state of the asset and its prospects for growth.
