Ethereum has brought a revolution with its dApp and DeFi technology. Decentralized applications are programs or applications that run on a decentralized network – blockchains – rather than on an individual computer. There are various use cases of dApps and while Ethereum is considered as the go-to blockchain for dApp building, it has a lot of issues of its own like network congestion, high gas fees – to name a few. Lisk is a purpose-built blockchain targeting the adoption of decentralized applications. Let’s dive into what Lisk is and how it works.
What is Lisk?
Lisk was founded in 2016 by Max Kordek and Olivier Beddows. Lisk had its foundations in another cryptocurrency, Crypti. In 2018, it was rebranded with a new strategy. Lisk is designed to serve as a platform for decentralized applications. Where some blockchains employ complex languages of their own, Lisk focuses on generally used languages. It eliminates the barriers to dApp development by allowing applications to be written in JavaScript and Typescript – both are widely used programming languages.
The platform employs sidechains which are custom built blockchains that operate within the network. Sidechains enable developers to build their decentralized application and cryptocurrencies. The network also has a software development kit (SDK) to help developers. Developers can utilize all the offerings of Lisk – like its cryptocurrency and the SDK – on the sidechains.
The platform has its native token LSK which is used for governance as well as for gas payments. It employs a Delegated Proof-of-Stake consensus protocol to ensure the security and decentralization of the network. The DPoS uses real-time voting to delegate block building to computers running the software. The consensus protocol ensures high decentralization as anyone owning LSK can be selected for block building.
LSK future outlook
The development team of the network has a huge focus on empowering developers. The team regularly updates the roadmaps with new updates and various guides and tutorials are published on their socials. Although the chances of Lisk overtaking Ethereum for dApp building are slim as beating the queen of the market may be one of the hardest tasks, it still has a good future outlook.
At the time of writing, the cryptocurrency stands at a price level of $3.03. The price has been trending upwards with a 4% increase in the past twenty-four hours. According to the estimates of Wallet Investor, LSK is expected to be operating at a price level of $4.92 in a year’s time and reach towards $10.99 in five years. Digital Coin Price has similar bullish projections for the cryptocurrency and expects the year ending price to be at $4.56. They expect the price to reach $11.07 by 2026.
