Lisk plans to launch a modular cryptocurrency which it says would satisfy the growing interest to use the blockchain as a decentralized database for different use-cases.
If successful with its launch, it would be the first of its kind. As a modular cryptocurrency, it means that “due to our decentralized application platform, you can implement new features very quickly and easily with decentralized applications,” explains Kordek, via a chat with CoinTelegraph. “Like a decentralized storage module, decentralized voting, usernames, identities, trust system, messaging, social networks, sharing economies.”
It will also serve as a solution to scalability which is a problem in the Bitcoin community. Due to the fact that the blockchain is limited in how much data it can hold, proposals for increasing the block size have been the topic of heated debate.
Why sidechains are important
Lisk’s cryptocurrency is to use sidechains to infinitely extend the scalability of a digital asset ecosystem without impacting the speed or performance of the core blockchain.
Sidechains are an independent cryptographic ledger which attach to the main blockchain, but does not impact the speed or security of the main chain. According to Daniel Vassilev of getLISK.com, sidechains are important because they reduce the ‘bloat’ on the main chain “allowing the main chain to continue being fast and efficient and only those who are interested in the Dapp are responsible for maintaining it and not everyone. Thus keeping the entire platform lean.”
As such, this currency has practical application value and can be used to create many types of ‘dapps’, including social media platform, e-commerce store, and many others. It currently has a market cap of around $25 million.