Lisk: everything you need to know about LSK

What is Lisk?

Lisk is an open-source blockchain platform designed to facilitate the development and execution of dApps, decentralized applications. The platform utilizes its own JavaScript-based programming language, making it easier for developers already familiar with JavaScript to build on the Lisk platform.

Lisk aims to accelerate the development of blockchain technology by providing a simple and user-friendly environment for dApp creation. The platform enables users to build and deploy custom blockchains, making it flexible enough to meet various business and development needs. Lisk is unique in the way it validates and processes transactions through its Delegated Proof of Stake (DPoS) consensus algorithm, allowing the network to be both fast and scalable.

How does Lisk work?

Lisk operates based on a decentralized network of nodes that validate and process transactions. The network employs a Delegated Proof of Stake (DPoS) consensus algorithm to validate transactions and add new blocks to the blockchain.

On the Lisk network, anyone can run a node and become a delegate by owning and using LSK tokens for voting. Delegates validate transactions and add new blocks to the blockchain. These delegates are elected by the user community, and those with the most votes have the greatest chance of validating transactions and adding blocks.

Lisk has its own programming language called Lisk-SDK, which is based on JavaScript. This enables developers to create dApps more easily on the Lisk platform. The platform also allows users to build and deploy custom blockchains, a significant feature of Lisk's sidechain architecture. Developers can create and manage their own sidechains linked to the main Lisk blockchain, offering scalability and flexibility for dApp development.

The Lisk token

The LSK token serves several important functions within the Lisk network. It is the default means of payment for transactions on the platform and a means of voting for delegates who validate transactions and add blocks to the blockchain. Developers also need LSK tokens to build and deploy dApps on the Lisk platform.

Delegates on the Lisk network earn LSK tokens for validating transactions and adding new blocks to the blockchain. These tokens are then used to cover the costs of running their nodes and to distribute rewards to their voters.

Lisk has a limited supply of up to 129,000,000 LSK tokens that will come into circulation. This limited supply is intended to prevent long-term inflation and devaluation of the tokens. New LSK tokens are not generated through mining but rather through a three-year DPoS delegation process, creating approximately 1.6 million new LSK tokens annually, which are distributed among delegates and their voters.

The Technology Behind LSK

The technology behind Lisk consists of several layers that work together to support and secure the Lisk platform. How do these layers work?

• Lisk-Core: The foundational layer of Lisk's technical architecture. It handles the consensus mechanism and the blockchain of the Lisk network, managing transactions and blocks to ensure agreement among all nodes on the network.
• DPoS Consensus Algorithm: This mechanism validates transactions in the network and adds new blocks to the blockchain. This algorithm enables faster transaction validation and enhances network scalability.
• Lisk-SDK (Software Development Kit): A development kit that allows developers to build dApps on the Lisk platform. This kit is based on the JavaScript programming language and simplifies application design.
• Sidechains: Separate sidechains that enable developers to create and deploy their own custom blockchains. These sidechains are linked to the main Lisk blockchain, providing more space for dApp development.
• Nodes: Nodes process transactions and manage the blockchain. Each node maintains a copy of the blockchain and collaborates with other nodes to achieve consensus on the blockchain's status.
• Delegates: Delegates validate transactions and add new blocks to the blockchain. They are elected by the Lisk user community and receive rewards in the form of LSK tokens for their work.
• APIs: Software environments that allow users and developers to access the Lisk network and communicate with the blockchain.

The Lisk ecosystem

The Lisk ecosystem consists of various components that collectively support the Lisk platform. The key components include the Lisk Foundation, the Lisk community, the Lisk SDK, the LSK token, Lisk Core, Lisk Sidechain, and Lisk Explorer. All these components work together to enable developers and users to build and use dApps on the network.

The Lisk Foundation is a non-profit organization that governs and manages the platform, while the Lisk community comprises a growing group of developers, users, and stakeholders involved in the Lisk ecosystem. The LSK token serves as the native cryptocurrency of the platform and is used as a reward for delegates and for processing transactions on the network.

Lisk Core forms the foundational layer of Lisk's technology and is responsible for operating the consensus mechanism and blockchain of the Lisk network. The Lisk SDK, the developer's toolkit, provides a simple and intuitive way to build blockchain applications. Lisk Sidechains offer scalability and flexibility for dApp development, and Lisk Explorer is a graphical user interface that allows users to explore the Lisk blockchain and track transactions.

Benefits of Lisk

What are the advantages of Lisk that attract investors?

• Highly developer-focused platform
• Multiple blockchains for building dApps
• Popular and widely-used programming languages for developers
• High efficiency thanks to sidechains
• User-friendly platform

Drawbacks of Lisk

No cryptocurrency is perfect, and Lisk is no exception. What are the disadvantages of Lisk that investors should consider?

• Direct competition from Ethereum
• Costs per dApp are determined by developers
• Relatively low recognition and adoption

Who is the founder of Lisk?

The founders of Lisk are Max Kordek and Olivier Beddows. Lisk emerged in 2016 from a fork of Crypti, a similar JavaScript-based cryptocurrency project that Kordek and Beddows initiated in 2014.

In February 2016, the founders conducted an initial coin offering (ICO) for Lisk's cryptocurrency, LSK, raising roughly $5.6 million in a sale that auctioned 85% of Lisk's token supply. The remaining 15% of LSK coins were distributed among key developers and stakeholders.

A rebranding effort in 2018 shifted the project's focus toward a new brand identity, design, and strategy.

Price forecasts

In 2026 experts expect a minimal price of €2.88 and a minimal price of €9.52 in 2031.