Lisk is one of the numerous available blockchain application platforms which was created in early 2016, it is designed to allow developers to create their own decentralized apps – similar in function to Ethereum or NEO.
It relies on its very own network of the blockchain along with a designated token, known as LSK. The developers behind Lisk hope that it allows other developers to create as well as distribute and manage blockchain applications of a decentralized nature. To do so, these developers will deploy their sidechains that are linked to the network of Lisk and its custom token. Because sidechains are flexible, developers have complete customization of their own blockchain applications with Lisk.
When Max Kordek and Oliver Beddows took a look at the blockchain industry following multiple years within it, they realized that developer adoption was lacking. They took this as a sign that blockchain technology wasn’t accessible enough. They then worked to develop Lisk as a way to simplify and accelerate the development of the blockchain framework.
Lisk codebase was actually forked from another project named Crypti, which the two developers were part of for 18 months which was eventually closed down:
However, for the ultimate goal the available financial reserves were simply not enough to develop the idea to its fullest extent, even though it was managed extremely carefully. Oliver and I saw the potential and decided to take over, giving Crypti holders an exit opportunity.
How Does Lisk Stand Out?
The vast majority of other solutions you will find are either based on a single blockchain or designed to be used with private blockchains. Instead of going with an all or nothing approach between these two strategies, Lisk takes the positives of each.
Lisk’s mainchain provides security and stability. At the same time, the sidechains allow for unlimited flexibility. As such, Lisk gives developers a place to create a blockchain network that is under their full control. They are also able to create this network in the form of a sidechain without having to put in the effort and time of forming a blockchain network completely from scratch; Lisk fills that role.
Getting Started With Lisk
To start using Lisk to its full capabilities, begins by creating an account, downloading the Lisk Wallet, and then launching the application. Following this, you receive your LSK tokens, which you can buy on many cryptocurrency exchanges and are further explained below. Tokens are essential for every action completed on the Lisk network, so this step cannot be skipped.
At this point, you can customize the advanced features on your account however you would like, including the option to add a second passphrase for added security. This is when you will be ready to explore the tools in the Lisk Blockchain Explorer. This explorer is constantly expanding and at the moment lets you view such things as all the delegates and statistics, the latest transactions, the richest accounts, the Lisk markets, and the network status. After this, those with more skills are welcome to use them to further Lisk, including deploying applications.
The applications built on Lisk will be decentralized, putting them in stark contrast to those found on Google’s Play Store and Apple’s App Store. Each of those is a centralized solution that a company owns to create centralized applications. By contrast, applications built on Lisk are decentralized and use blockchain technology that everyone can access.
How Can Lisk Be Used?
Once the Software Development Kit is launched, the possibilities for using Lisk for development are limitless. It will be possible to develop social networks, games, messengers, and other applications that are independent of platforms. Best of all, there will be no hassles like following peer-to-peer networking protocols or developing consensus algorithms. Because the individual blockchains will be built off the main Lisk blockchain, these challenges are already taken care of while still maintaining decentralization.
ICO Details and LSK Tokens
Lisk’s ICO took place in February and March of 2016, during which time 100 million LSK tokens were distributed. Eighty-five percent of these tokens went to ICO participants, with 7.8 percent going to the core team. The campaigns and bounties received 4 percent, while the advisors, partners, and third parties got 2 percent. Finally, early supporters received 1 percent, and the remaining 0.2 percent went to first-day ICO participants.
If you missed the ICO, you can buy and sell LSK tokens on the majority of the major exchanges, including Jubi, Poloniex, Bittrex, and YoBit. You can exchange them for bitcoins and other cryptocurrencies. The only FIAT currencies that you can currently exchange LSK tokens with are the Japanese Yen and Chinese Yuan, although the developers hope to expand the options in the future.
How to Buy Lisk
Purchasing Lisk with “Fiat” currency is not currently possible, so the easiest way to purchase it at the moment is by buying either Bitcoin or Ethereum and then swapping these for it on an exchange. In this section we will show you how you can purchase cryptocurrency with a Credit or Debit card using the Coinbase website and then swapping it for Lisk at Changelly.
Register at Coinbase
For first time buyers of crypto currency, we recommend that you use Coinbase to make your first purchase – its easy to use, fully regulated by the US government so you know it is one of the safest and most reputable places to purchase cryptocurrency from. Coinbase offers the ability to purchase Bitcoin, Litecoin and Ethereum with a credit or debit card or by sending a bank transfer. The fees are higher for cards but you will receive your currency instantly.
You will have to carry out some identity verification when signing up as they have to adhere to strict financial guidelines. Make sure you use our link to signup you will be credited with $10 in free bitcoin when you make your first purchase of $100.
To get started, click the “Sign up” button where you will be taken to a registration form where you will need to enter your name, email and choose a password.
Coinbase will then send you a link via email to verify your email account, once you click the link in the email you will be taken to a verification page. You must then add your phone number and upload a photo of your ID – this can be a passport, driving license etc. You also have to add your payment details, so you can add your bank account or a debit or credit card as required – after a short period your account will then be verified and you can then make your first purchase.
Purchase Ethereum or Bitcoin
For this guide, we will be purchasing Ethereum to swap for our target cryptocurrency. The reason for this is that it has far cheaper fees than bitcoin for sending and the transaction also happens a lot faster. So in Coinbase, visit the “Buy / Sell” tab at the top, select “Ethereum”, choose your payment method and enter the amount you wish to purchase – you can either enter a US Dollar amount or a number of Ether.
You will then be asked to confirm your transaction, if paying with a card you might have to complete a verification with your card provider. Once that’s complete, your Ethererum will be added to your account.
The next stage, is to use the Changelly website to swap your Ether for Lisk. Use this link and enter how many Eth you will like to convert and it will show you how many LSK you will receive in return, if you are happy then go ahead and click the green “Exchange” Button.
On the next screen you will be prompted to register an account which you can do so by using a social media account or entering your email address.
Once that’s done, you will be taken to a page showing the transaction details – check it over and make sure the amounts are correct. Once you are happy click the green “Next” button.
On the next screen, you will be prompted for your Lisk wallet address where you will receive the coins. Paste this into the box and click the green “Next” button.
You will then be shown a final confirmation screen, again, make sure all details are correct before proceeding.
Changelly will then provide you will an address to which you mush send your Ether, so copy the address that they give you and then head back to your coinbase account.
Send Your Ethereum or Bitcoin
In Coinbase, click the “Accounts” and Select your Ethereum Wallet on the left and then click “Send”.
Enter the address that Changelly gave you before.
Click “Continue” and then you may have to confirm the transaction with your email or phone if you have 2 factor authentication enabled.
The transaction will now be sent over the Ethereum network and will take a short while to arrive – you can check in your Changelly account where it will notifiy you of the following steps :
- Waiting for payment
- Sending to your wallet
Once it’s complete a confirmation message will appear on the screen saying “Transaction Complete”. You can now check your Lisk Wallet where you can confirm you now own your LSK.
Delegated Proof of Stake (DPOS)
The same as Ark, Lisk uses a Delegated Proof of Stake (DPOS) system for consensus which works as follows :
Anyone can register a delegate account on the Lisk network by simply choosing a username for their account. Now this delegate account can collect votes from any LSK holder. Easily spoken 1 LSK equals 1 vote and every LSK holder can only vote with the total amount in his account. The 101 delegates with the most votes in the whole network become active and start securing the network by adding new blocks. Every other delegate account outside the top 101 is on standby. The voting process is dynamic and the order of the delegates, active and standby, can change.
This means, you choose a delegate to vote for who then share their LSK rewards with the pool of people who voted for them, thus increasing your LSK supply just for holding the currency.
About The Team
Oliver is a full stack developer with over 15 years experience in building mission critical enterprise applications. He co-founded Lisk with the view to inspire and enable developers to build the decentralised applications of their dreams, with an unparalleled degree of simplicity and ease. He is a husband, father, open-source advocate, blockchain enthusiast, and works tirelessly to build a better future for Lisk everyday.
Because of Lisk’s focus on decentralization, the Lisk Foundation works with contractors from around the world. Many are located in New York; Berlin; and Zug, Switzerland. The core team working on Lisk (via Lightcurve GmbH) are based in Berlin.
Once it is up and running, Lisk can be a valuable tool for developers in search of decentralized platforms. This software should save developers time, allowing them to focus on perfecting their application instead of being bogged down by details of the main blockchain.
Like Ark, this is a good Cryptocurrency to hold as you are rewarded by the delegate system for holding the tokens in your wallet ( the more people who hold and stake their tokens, the less supply for sale). Lisk is just over a year old and the LSK tokens currently cost around $4.70 ( as of 15th September 2017 ) with an ATH of just under $8 so now would seem to be a good time to buy and hold until the platform matures and there are real-world uses of in action.