What Is the Lisk Network and LSK Token?
To develop applications that can be used across multiple platforms, blockchain technology is faced with a major challenge in the Web3 era due to the lack of accessibility. The use of various programming languages by different blockchains makes it difficult for developers to build such applications.
What Is Lisk Platform?
With its open-source layer-1 blockchain application platform, Lisk aims to facilitate the onboarding of users into the Web3 space. The platform offers a simple software development kit (SDK) that enables developers to build scalable blockchain applications, including metaverse projects, DAOs, and NFT marketplaces. These applications offer faster transaction speed at lower fees for users.
How Does Lisk Work?
Founded in 2016, Lisk's main focus is to improve Web3 accessibility for developers and users. It was co-founded by Max Kordek and Oliver Beddows. Lisk offers a range of features including:
Delegated Proof of Stake
Lisk secures its blockchain using the Delegated Proof of Stake (DPoS) consensus algorithm. This mechanism is a more democratic and efficient version of the Proof of Stake (PoS) mechanism. The network allows validators to outsource block validation through a voting system. Lisk token holders can use their LSK tokens to vote for up to 10 delegators to secure the network and share LSK rewards. Delegators with more votes are more likely to generate subsequent blocks. With 100+ delegated validators, Lisk operates in a fairly decentralized manner, ensuring scalability and a higher transactions per second (TPS) rate.
The Lisk SDK
Lisk is building the Lisk Platform to enable developers to build scalable applications with greater flexibility and autonomy on sidechains. The Lisk Platform will facilitate interoperability between all application-specific blockchains in the network. Sidechains are separate blockchains that connect to the main chain, and Lisk developers will be able to deploy their sidechains to scale their blockchain applications and offer lower transaction fees and greater TPS. The interoperability will enable smooth asset exchange between sidechains and the main Lisk blockchain. Lisk plans to expand its ecosystem by enabling interoperability with other layer-1 blockchains and protocols such as Ethereum (ETH), Polkadot (DOT), and Cosmos (ATOM). This will enable users to benefit from a growing ecosystem of apps interconnected through Lisk bridges.
What Is LSK?
LSK is a utility token and the native cryptocurrency of the Lisk network, used for paying transaction fees and rewarding network delegates. LSK holders can use their tokens to secure the Lisk network through DPoS by staking them in the Lisk Desktop wallet to vote or delegate. During these roles, the tokens remain locked.
As the Lisk network achieves interoperability with other blockchains, the utility of LSK is expected to increase, leading to more use cases. For instance, LSK could be used for registering blockchain applications or transferring messages between different applications.