Following Bitcoin’s success, scores of cyptocurrencies sprung up in every nook and cranny of the internet. It was always safe to assume though that many of these would be stillborn. Lisk Coin (LSK) is definitely NOT one of the stillborn lot.
It offers technological innovation and moreover, it acts as a platform for such innovation. Its birth was also marked by one of the most successful crypto crowdfunding efforts ever.
Lisk Coin is focused on creating a friendly environment for the development of blockchain applications. This is – in a nutshell – its main draw, but the power of this feature makes it much more than a simple unique selling point.
Why is that the case?
Let us take a closer look at how Lisk Coin works and how it hands developers a unique set of tools, which turn app-development into an easy and attractive proposition for many.
The Unique Structure of the Lisk Coin Blockchain
The Lisk Coin network is a modular one, based on a main chain and an unlimited number of side chains that users can attach.
Using the Sidechain Development Kit provided by Lisk, users are free to create their very own blockchains. It is easy to see why such a feature is indeed so essential and such a breakthrough for the creation of blockchain apps.
The power of the sidechain cannot even be properly gauged for a new project.
Developers can use the tools provided by Lisk Coin to build up their decentralized apps on their own side-chains. These apps and sidechains then communicate with the main Lisk Coin blockchain.
The true power of the side-chain resides in its scalability, through which it adapts as the project built onto it evolves and grows.
The modular nature of the Lisk coding tools make development easy. Some have indeed likened it to WordPress, which has done for web development what Lisk Coin will hopefully do to dapp (decentralized app) development.
The Main Chain is the spinal cord of the entire Lisk ecosystem and it hosts the Lisk Coin currency. This is where users have to register their newly created side-chains too.
The tools newly created sidechain owners can use for the customization of their side chains and for the development of their dapps, are Lisk Commander, Lisk Core and Lisk Elements.
Create Your Own Crypto Coin and Have Your Own ICO
Indeed, through the power of the Lisk side chain, developers can create and integrate their own token, which can then be used for payment purposes on the sidechain, as well as various other functionalities. Lisk Commander is the tool of choice for this operation. Needless to say, consensus protocols can be customized as well.
The system makes good use of the wisdom of the masses too. A bounty system is being planned to reward those who contribute useful modules to Lisk Elements. This way, not only will the library be a continuously evolving and expanding one, giving ever newer tools to solve ever newer problems, it will also allow the Lisk dapp ecosystem to become a genuinely decentralized one.
If you have your own token and your own blockchain, you may want to have your own ICO too.
There’s a great deal of responsibility involved in hosting an ICO though, and the official Lisk website offers an exhaustive and useful guide in this regard. Make sure you do not abuse the powers handed to you by the Lisk side chain.
Having created your own Lisk Coin side-chain, your next step is to design an attractive and intuitive user interface. Lisk uses JavaSript for this purpose and it makes a staggering array of developer tools available.
In addition to all the above, Lisk have apparently not forgotten about the testing phase of sidechain-based dapps either.
In this regard, Lisk Commander offers a full suite of testing for every bit of code included in a newly created project. A Testnet is also available in the package. All that leaves the user to do is to launch and promote his/her side-chain based dapp/cyptocurrency.
Lisk Coin and the Internet of Things
The fact that – besides hosting a thus far very successful crypto coin – the Lisk ecosystem is in essence designed for app developers, carries quite a bit of significance.
If the network goes mainstream, its crypto achieves mass-adoption and millions of developers join its virtual fold, the sky will be the limit to what it will achieve innovation-wise. Side chains will host social networks, games and applications focused on the internet of things, not to mention fintech and business dapps.
In essence, what Lisk proposes, is to hand the power of the blockchain over to the individual, rank-and-file user, complete with a set of tools and environments that will make it possible for millions and millions of people to put blockchain to use and to contribute to the Lisk ecosystem.
Lisk Coin and Its Peculiarities
An inflationary crypto currency launched in 2016, Lisk Coin uses the Delegated Proof of Stake (DPoS) consensus protocol.
New Lisk Coins are not mined. Rather, they’re forged.
Lisk Delegates are the ones who pick up Lisk for forging and for various other activities, such as transmitting payments, registering a multisignature, voting and registering as a delegate.
Only elected delegates are able to forge and only they can collect rewards from round fees and blocks. The resulting revenues are then shared out through the community by delegates, according to a scheme they themselves set up.
In addition to Delegates, the Lisk Coin Ecosystem also makes use of Ambassadors, who are given rewards as well, for promoting Lisk within their designated jurisdictions.
Rank-and-file users cannot be Ambassadors, but they too can earn rewards running campaigns or teaming up with others to run campaigns, the goal of which is to spread to word about Lisk.
Delegates will also list projects in the proposal section. Users who then make significant contributions to these projects (build tools, apps and algorithms) are also given rewards, and they can earn through donations as well.
Proposals can be drawn up by anyone, and contributors can indeed earn rewards by delivering on their proposals and making a significant contribution this way.
The whole idea behind this utterly democratic form of coin-forging is to encourage competition among those aiming to contribute to the network. Over time, as more and more users jump aboard, it will be more and more difficult to become a delegate.
All network members can vote for delegates. The weight of an individual vote is determined by the amount of Lisk held by the voter. This way, there is a clear incentive to accumulate currency and to vote for the best delegates.
The Lisk Team
Unlike some of their peers, the people behind the Lisk ecosystem and Lisk Coin are very serious and transparent in all they do in regards to their creation.
They haven’t used any of the funds resulting from their successful ICO, for expenses such as traveling for promotional purposes etc.
They have not dumped any of their LSK holdings either.
Obviously, due to the above presented consensus protocol, by doing so, they would relinquish control over their own creation, allowing others to take charge.
The Bottom Line
Having started off a value of about $0.30 back in 2016, some 2 years later, LSK is trading at a little over $14. Those who have acquired (bought) LSKs back in the early days and held on to them, certainly found it worth their while.