Developed as a Blockchain application platform, Lisk operates based on its own blockchain network and aims to enable developers to not only create but also distribute and manage their decentralised blockchain applications.
Using the their App SDK, developers can develop both the backend and the frontend of their applications and therefore have the opportunity to create blockchain-based applications that can be downloaded easily.
Lisk vs Ethereum—Similarties
Lisk has been launched as a decentralised system to enable developers to build applications and is therefore like Ethereum in the core concept.
Alos, similar to Ehtereum, Lisk is a cryptocurrency with the LSK ticker. But, just as is the case with Ethereum, LSK is not supposed to be used as a digital currency but is rather a token that fuels the entire Lisk network and are required by developers to build apps on the Lisk network.
Lisk vs other cryptocurrencies—Differences
Though Lisk appears to show similarities with Ethereum, it has not been built with the goal of creating smart contracts. Though their platform employs smart contracts, the intention behind its development lies in enabling the development of varied applications and functionalities based on their App SDK framework.
Unlike Bitcoin, Ethereum, and NXT, Lisk does not employ a Proof of Work or a Proof of Stake but rather a simplified implementation of BitShares’ original consensus algorithm by the name of Delegate Proof of Stake.
Features of Lisk
- It claims to be the first modular cryptocurrency utilizing sidechains.
That is to say that the coin involves modules which serve as the basis of its design and construction. The system permits anyone and everyone to employ its designing blocks to construct their own decentralized applications. Since it is written on Javascipt—a script most developers are familiar with—its applicability value is high.
- Its makes use of sidechains.
Sidechains, as claimed by the company, are its solution to artificial bloating of blockchain. Sidechains are to be understood as additions to the main blockchain which allow a user to add more value without clustering the main text. A user can attach these sidechains to independent blockchains and create a place that can store all the high-volume transactions without interfering with the main blockchain.
- Open Source Software: the Lisk App is an open-source platform and hence allows a transparent overview of other developers’ tasks.
- Designed for Application Developers
It was all pretty evident in the statement issued by the Lisk CEO:
The Lisk coin, LSK was launched on April 6th, 2016. Lisk had its first initial coin offering in May 2016 where 100,000,000 LSK were created and distributed among early supporters, the Lisk core team, partners, advisors and ICO participants raising a total of $5.7 million—the fourth highest crowdfund for a cryptocurrency in history.
The Lisk coin, LSK has risen from $2.04 to $18.25. It’s current market cap value is $2,167,676,603. At present, LSK can be purchased on various cryptocurrency exchanges including YoBit, Bitrex, Bloombit, Poloniex, and Bit. The purchase can be made through bitcoins, ethers, and other cryptocurrencies.
Why should you invest in LISK—the good and the bad.
Lisk is not a digital currency that can be employed to purchase and sell goods and/or services. That is to say that unlike bitcoin, merchants will not adopt the LSK as a mode of payment. But, what will prove to be in favour of platform is technology adoption and interest of investor.
According to the present market, investing even a small amount in LSK at the moment has the potential to turn into a big yield.
Also, since it has now partnered with Microsoft Azure, the Lisk blockchain applications can be developed, tested, and deployed using the Azure cloud-computing platform. But this investment comes with a risk of LSK prices dropping sharply if more superior blockchain networks with comparable functionalities were to appear.
Though Lisk is being preferred because of the high developer participation that it offers, it lacks in liquidity with low-trading volumes on exchanges and therefore must build a larger community around itself to garner more discussions on social media.
However, that does not overshadow the fact that the potential reward for investing in Lisk at the present is quite high and unlike Ethereum, all Lisk applications run on sidechains providing an advantage in scaling applications to a mainstream target audience.
The Bottom Line—Pros and Cons
Similar to all other cryptocurrencies that have been introduced so far, Lisk has its own positives and negatives.
- It is currently in the 3rd phase of its roadmap but it can face problems in attaining new users if the rebranding and updated-messaging fail to improve the market perception.
- The delegate pools have been the recipient of major negative feedback from infant users of the community. Lisk needs a better promotion strategy to reach out to newer investors and potential users.
- It exhibits strong aspects that can carry it through the following years. It is quite well-funded and is backed by a committed development team.
- It takes wonderful care of the utility aspect since it provides a platform for other blockchain-based applications. That gives the LSK multiple uses—running an ICO, transferring value in and out of a sidechain app, and delegate voting to name few.
- It is now among the largest communities and has been earmarked to become a popular marketplace for app developers and is bound to increase the existing apps or develop new ones.