Lisk is a blockchain application platform designed to provide developers with easy to use tools with which to build and maintain their own decentralized applications (DApps). Based on the Lisk blockchain network and LSK tokens, Lisk users can create and distribute their own modular sidechains that act as fully independent and customizable blockchains, including support for custom tokens.
What is Lisk?
Lisk is the brainchild of developers Max Kordek and Oliver Beddows. The idea behind Lisk is to address a major problem within blockchain technology: There are not enough developers familiar with blockchain to meet the demand for custom DApps. What Kordek and Beddows proposed was a system that would make blockchain technology more accessible. They would create a virtual toolbox, the Lisk App SDK to offer users the chance to create their own distributed blockchains without having to become experts in the tech themselves.
Once users are ready to get started, they can create sidechains that are independently distributed blockchains linked to the Lisk mainchain without affecting its overall speed for performance. Developers maintain full control over their blockchain network as a sidechain, while the team behind Lisk maintains its mainchain. One of the most important things to note with Lisk sidechains is that any bad code that may negatively affect a network will be self-contained and cannot harm your chain or the mainchain.
Lisk was first developed, like many other blockchain projects, by forking another blockchain, Crypti. Forking allows developers to take an existing codebase and fork it off into an independent chain, which can then update and change as they see fit.
After forking the Crypti chain, Kordek and Beddows decided to launch an initial coin offering, or ICO, to raise funds to continue the project’s growth. The ICO has been a huge success making it one of the most successful crowdfunded cryptocurrency projects to date, raising 14,000 Bitcoin. Lisk’s LSK token went alive on May 24, 2016, and was made available on many major exchanges for trading.
Advantages and Disadvantages of Lisk
- Scalability and Protection –Lisk’s sidechains are all performing their own transactions that will not conflict with other chains, including the mainnet. It safeguards against cases where the Ethereum network has been threatened in the past. Buggy DApps built on Ethereum were hacked (the DAO) and tokens locked by mistake (Parity Wallet). When the DAO was hacked due to security flaws, controversially the Ethereum community decided to fork their blockchain. The incident involving the Parity wallet has not been dealt with. Millions of dollars are locked in a smart contract at ETH.
- Partnership with Microsoft –In 2016 Lisk started working with Microsoft to provide custom blockchain creation guides and models using the Microsoft Azure cloud platform.
- App Directory –The Lisk network will act as an App Store when fully implemented, allowing users to browse easily through the various side chains linked to the mainnet.
- Brand Strategy – Lisk developers have recognized that they will be a platform used by potentially hundreds of different projects and they have hired a brand strategy firm to grow the brand and earn the trust of potential users and LSK speculators.
- Generalized Risk – Even though each sidechain operates independently, your blockchain project would still be tied to the success of Lisk. If the Lisk developers were to abandon the project, it is possible that all of the sidechains would go under as well.
- Lisk is a Young Network – Other DApp platforms like Ethereum and NEO have years of development experience and support compared to Lisk. At the moment, Lisk does not have a fully operational system in place.
How to Buy LISK
LISK can be exchanged on a variety of exchanges including major ones such as Binance and Bittrex. Most of the trading pairs currently available contain Bitcoin so you’d need to purchase some BTC at an exchange like Coinbase and you can transfer the BTC to one of the LSK trading platforms.
How to Store LISK
The best way to store LSK at the moment is the Lisk nano wallet, which is a light wallet or SPV wallet. Light wallets do not run full nodes for storing a copy of the blockchain. This one connects to the Lisk Foundation nodes. There has been an announcement of a full desktop wallet being developed from the ground up.