Lisk : an altcoin to watch closely

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Temps de lecture : 4 minutes

Introducing Lisk

Lisk (LSK) is an altcoin created in 2016 by Max Kordek and Olivier Beddows. Their main goal was to compete with Ethereum, while creating a more accessible ecosystem for developers and users. This makes it possible to use the JavaScript language to code decentralized applications (DApps) on the network.

The Lisk blockchain is based on a “proof of stake” system and not on a “proof of work” one.  With this fairly new validation consensus, it is no longer the members with the most powerful hardware who are allowed to add blocks, but those with the most tokens. These validators are called “forgers”: they are responsible for “forging” the Lisk. This term replaces “mining” in the vocabulary of this network.

Only 101 principal “forgers” have the power to validate blocks. They are freely elected ” representatives”, notably according to the number of LSK tokens they possess. This is the native currency of the network. These tokens must be exchanged for Bitcoins (BTC) or Ethers (ETH).

To obtain LSK tokens, it is therefore necessary to buy one of these two cryptocurrencies on exchange platforms that accept the dollar, such as Coinbase or Coinhouse. Thereafter, many platforms allow the exchange of Bitcoins or Ethers for Lisk, such as Binance, Upbit or HitBTC

In short: Lisk explained in 5 key points

  • Lisk is an altcoin created in 2016 by Max Kordek and Olivier Beddows.
  • Its blockchain is based on a “proof of stake” system called Delayed PoS. “Forgers” are chosen based on their possession of tokens rather than the power of their hardware.
  • Lisk allows developers to code in JavaScript.
  • The LSK token is its native currency.
  • LSK tokens cannot be purchased directly: they must be exchanged for Bitcoins or Ethers.

What is the Lisk’s market price?

cours du Lisk

Analysis Elements

Following Bitcoin, Lisk has been on an upward trend since the beginning of 2021. After this strong rise, a sharp fall was seen from April 17. From April 25 onwards, a new rally seems to be taking shape. The price has been rising steadily, from $1.2671 on February 1 to around $5 since April.

What explains the rise in its price?

An upcoming update

Lisk has announced the update of the application that manages the protocol of its blockchain: “Lisk Core“. This version 3.0.0 should allow to correct many bugs, to offer more possibilities to developers, or to reinforce the stability and the security of the network.

Lisk.js 2021 edition: a highly anticipated conference

Every year, the Lisk staff organizes a conference: the Lisk.js. Its 2021 edition will take place on May 21 and 22. The conferences planned for this year’s Lisk.js are particularly important for the future of the altcoin. Its research team is expected to introduce new parameters that will permanently change the way the decentralized network works. They in turn should have a positive influence on the Lisk price. We will elaborate on two of these changes. 

New features for decentralized applications

As we have seen, the project wishes to facilitate the creation of decentralized applications (DApp) thanks to a development kit based on JavaScript. This language is very well known by developers and less complex to learn than Solidity, used by Ethereum.

These applications have the particularity of operating on their own sidechain. This means that they are entirely independent and autonomous from the Lisk blockchain. This increases the speed of operations on the mainchain, but also strengthens its security: in case of a hardfork, only the sidechain must be modified. Also, each sidechain can be customized and optimized according to the developer’s needs. 

Lisk plans to further simplify DApp programming, offering ready-made application templates from 2021, which will greatly reduce the work of developers

An interoperable ecosystem from 2021

The second major change concerns interoperability. This concept is crucial in the field of cryptocurrencies and centralizes a large part of the research around blockchains. Today, blockchains are mostly isolated, i.e. they are completely independent from each other. Thus, the Bitcoin blockchain cannot share information with the Ethereum blockchain, and vice versa. This lack of interoperability prevents the democratization of the blockchain system. It is essential for the implementation of decentralized finance (DeFi) for example.

Lisk plans to make its ecosystem fully interoperable in 2021. It will thus be possible to exchange data or tokens with other existing blockchains, but also directly between Lisk sidechains. This should accelerate operations on its network and allow the creation of new innovative decentralized applications.

In short: 2 events could trigger the growth of the Lisk

Lisk’s price rise appears to be supported by two major announcements:

  • The program update on which Lisk is based, called “Lisk Core”, has been announced for 2021. It should improve the experience of its users and developers. 
  • The 2021 edition of the Lisk.js conference will take place on May 21 and 22. This is a highly anticipated event for developers and blockchain experts. It will allow Lisk to introduce decisive changes.

Lisk’s partnership

Lisk partnered with Microsoft in 2016, which uses its blockchain as a service for its Azure cloud application. 

Its partners, advisors, and contributors got 3% of the first distributed tokens.

Our opinion on Lisk: should you invest?

Our predictions for the price of Lisk are mixed. The pandemic has had a strong impact on altcoins, which must now prove themselves very quickly if they do not want to disappear. While the Lisk price has been on the rise since the beginning of the year, the cryptocurrency still needs to find its place in the decentralized application market, where Ethereum is still the leader. It seems relevant to monitor the Lisk price in the coming weeks, especially when their new services will be implemented.

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