What Is the Lisk Network and LSK Token?
The Lisk blockchain platform is open-source and offers an SDK for building blockchain applications using JavaScript. It aims to make Web3 more accessible to developers and users. Lisk plans to enable developers to deploy sidechains to their network, which will help scale their blockchain applications while staying connected to the Lisk ecosystem.
Basics
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’s SDK based on JavaScript is a standout feature of the platform. While many popular blockchain networks use different languages, such as C++ for Bitcoin and Solidity for Ethereum, Lisk's open-source and modular SDK aims to make blockchain and Web3 accessible to more developers. The use of JavaScript removes the barrier to entry for those new to building blockchain applications, as it is a widely-used programming language. Additionally, Lisk plans to launch the Lisk Platform, which will allow developers to use the SDK to build applications on sidechains instead of smart contracts. This will improve scaling and reduce transaction fees. The Lisk SDK is expected to support the development of modules for NFTs, P2P, and Proof-of-Authority (PoA).
Sidechains
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.
Conclusion
Lisk is among the projects that aim to make blockchain technology more accessible to the masses. The use of a popular programming language such as JavaScript through the Lisk SDK is intended to enable more developers to build blockchain applications. This is expected to make blockchain technology more user-friendly by eliminating the need for developers to learn complex coding languages. The Lisk ecosystem also offers users access to a wide range of interconnected applications with faster transactions and lower fees. This move towards greater accessibility is seen as a critical step towards the mass adoption of Web3.