As of now, Lisk is sitting at #19 according to the coin market cap. So, today all of us that’s everyone that’s reading this post are going to explore about this boon of a cryptocurrency for web developers called “Lisk.” Here’s what we’re going to cover today: What is Lisk, how does it work, consensus system/algorithm used by Lisk, what is the supply system of Lisk, what problems does it solve, Team/Personalities behind Lisk, Lisk rebranding, where to store it.
What is Lisk:
How does it work:
Till the time people are using the sidechain to create dapps ( i.e., forging something ) the operations will be processed. The creators of the respective creations on their respected sidechains will receive the accumulated fees, i.e., either Lisk or a custom token on the basis of the assumption that the developer had integrated this (being able to collect Lisk or other tokens for his/her application) into his/her dapp which is recommended for preventing spam. However, it seems like they’re still in their developmental stage based on my individual opinion and the store feature may or not be active. So, I’d recommend independent research here.
Apart from that, you can earn free Lisk by voting for your favorite delegates through pools on the platform. You get 1 Lisk for every 33 votes you make, and you can vote for up to 101 delegates. So it’s up to you who you want to choose as your source of free Lisk.
Consensus system of Lisk:
Lisk utilizes a Delegated Proof of Stake (DPOS) as it’s consensus system/algorithm. In this delegates are the ones that forge all the blocks provided that they possess the required amount of Lisks/stake within the system. They’re selected through a rigorous voting system by the members of the Lisk community. Any person who desires to can become a delegate. All you need to do is pay a registration fee of 25 Lisks and then set up a node, begin forging and get elected. However, only the most respected members of the community get elected as delegates based on their past performance and their plans for the future of the community which will be presented by them to the community. Currently, a total number of 101 delegates are chosen for the purpose of creating new blocks for the system in a procedure called forging. Every stakeholder on Lisk can vote for up to 101 delegates as stated earlier and the weight of the vote of every stakeholder depends on the amount of Lisk the voter has with him. As a stakeholder, you can vote for a delegate by using a vote transaction.
Every delegate gets an opportunity to forge a block during rounds that happen within the system. One round within the blockchain is equal to N blocks in length ( N is equivalent to the number of total forging delegates present within the system ). Each delegate out of the 101 gets to forge one block during his turn in the blockchain. If for some reason the selected delegate isn’t able to perform his share of the work then another delegate will take over his place. Every delegate out of the 101 delegates is given a slot which shows them their place in the “forging procedure”. After this when a particular node possessing an enabled active delegate account completes forging a block then the node attached with the respective delegate account includes up till 25 transactions inside of the block that he/she just created, signs it and broadcasts that particular block to the entire network. As soon as the block is disseminated into the system, the next delegate will begin creating a new block in the slot allotted to him/her.
Now moving forward with the topic of consensus, it’s a vital aspect of any blockchain mechanism. It serves an essential purpose for the system which contains a lot of nodes. All the nodes must consent to the accuracy and legitimacy (whether or not it’s useful to the platform) of the data. Also, all the nodes involved must comply with the legitimateness of the transactional data in order to move the blockchain forward.
What is the supply system of Lisk:
Lisk has an unlimited supply of LSK tokens. It makes use of an inflationary forging rewards mechanism that creates fresh LSK for every block completed successfully. For the first year, the forging rewards are fixed at 5 LSK/block. However, after a total of 3,000,000 blocks have been successfully forged the rewards get reduced by 1 LSK/block every year. And after a period of five years, the forging rewards will drop down to 1 LSK/block and continue to stay at 1 LSK/block forever. But then what will happen to the forging rewards? They’re going to be shared by the top 101 active delegates. Just the same thing as any other network fees.
What problems does it solve:
Lisk is like a brother to Ethereum ( I know the developers might not agree but this is just my opinion ) and to date has created a lot of buzz in the market, especially for web developers. So as a crypto enthusiast you might be aware why a relaunch is so special. However, if you aren’t then these are a couple of reasons as to why do you need to care about a relaunch as a crypto enthusiast.
- There’s a correlation between rebrandings of cryptocurrencies and a spike increase in value. For instance, when AntShares changed its brand name to NEO, its price spiked from single digits to way up to the 40s. However, whether or not Lisk manages to accomplish this feat is uncertain but still, the possibilities of a price hike are always on the cards i.e. it may or may not happen.
Alright, now that we know why a couple of reasons to get hyped up for a relaunch, let’s look at the date of the actual relaunching/ rebranding of Lisk is going to happen. According to the official website, the relaunch is going to commence on the 20th of February in Berlin.
Now, what’s in it for you? As I mentioned earlier there is a possibility of a price hike but it is also possible that the price may fall as well. So, let’s just wait and watch with regards to price.
Where to store it:
You store your Lisks in the wallet provided on the Blockchain itself after you have successfully created your account at Lisk.io. Then you can use those LSK to vote for your favorite delegates and earn some free Lisk in the process as well. Pretty cool right? Another question that you guys might have is that: does Lisk have a paper wallet or does exodus wallet support, Lisk? As per the official site of Exodus it currently doesn’t support Lisk for whatever reasons. So, if you guys were interested in using exodus wallet as your option for storing Lisk, then you might have to stay contended with the wallet available on their own site. Now to tackle the question of Lisk supporting a paper wallet. A pretty tough one. Lol. Just kidding. The answer to your question is yes. Lisk does support a paper wallet. It’s an unofficial wallet per say but still available for usage. Here you can access it (Not Recommended). Whether or not you want to access it is up to you and your discretion. I wouldn’t recommend it until it becomes official. Why? Because it’s your hard-earned Lisk and therefore you shouldn’t trust anyone with it.
I Hope you got some idea of What is Lisk (LSK), How it works, When is relaunch and Where to store LSK safely. If you have any question or suggestion feel free to use the comment section below. Alos Follow us on Facebook, Twitter, Steemit.
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