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Lisk Review: All you need to know about Lisk

lisk homepage

With revolutionary change happening in the crypto space, Lisk has surely set a new benchmark for the new Cryptocurrencies.

What is Lisk?

Lisk is a public open source Blockchain environment powered by LSK tokens which provide decentralized Blockchain applications. It allows developers to write decentralized apps in JavaScript programming language. It gives developers the ability to build apps on their own sidechain which is linked with the Lisk network, along with their own custom token. It provides an easy to use interface and access full-featured environment. Using Lisk, developers can create, distribute, publish, and monetize their apps within a crypto-currency powered system which allows the use of customized Blockchain, cloud storage, smart contracts, and computing nodes. Lisk uses NodeJS as the back-end computing engine for JavaScript code. NodeJS itself is really very flexible and has the ability to be deployed to all the desktop architectures and various IoT (Internet of Things) devices. This great flexibility gives Lisk the capacity to run on any machine which has the hardware to support the client.

History of Lisk

When cryptocurrency was first introduced, no one thought that a large number of other Cryptocurrencies would enter the market, one after the other, within a short period of time. There are literally hundreds of Cryptocurrencies existing. As a result of this, many altcoins end up ‘dead’ (which means that there is no reported market cap). According to CoinDesk’s State Of Bitcoin and Blockchain report in 2015, there are more than 400 ‘dead’ altcoins so far.

Lisk was founded by Max Kordek and Oliver Beddows in May 2016. It started as a fork of Crypto starting with an Initial Coin Offering (ICO) to determine the initial distribution and to raise development funds. The ICO raised 14,000 BTC and was at the time the second most successful cryptocurrency crowdfund before WAVES and DAO surpassed it. On 24th May, the main net went live and it was available for trading on big exchanges. Shortly after trading started, Lisk became the second most famous cryptocurrency traded against Bitcoin.

Lisk vs Ethereum

There are many discussions on Reddit on Lisk vs Ethereum. All these Reddit discussions perform analysis and compare the two Cryptocurrencies and list the pros and cons of each. These analyses of the two Cryptocurrencies conducted conclude that each of the two has their own benefits over the other.

LISK

  • Lisk uses the JavaScript programming language
  • Lisk ‘sandbox’ can’t be used to run untrusted or fishy code
  • Lisk framework provides no protections against non-deterministic behavior
  • It is unable to prevent infinite iterations and/or measure total computation
  • Lisk does not have the ability to stop unbounded memory growth and/or measure memory consumption
  • Common JavaScript language characteristics (like looping over keys in an object) results is hidden non-deterministic behavior
  • Lisk does not have its own virtual machine yet (the virtual machine is still in development)

ETHEREUM

  • Ethereum uses the Solidity programming language
  • It is applications which run on its virtual machine the Ethereum Virtual Machine (EVM).
  • Ethereum protects developers from a large number of problems that trouble experienced Blockchain developers.
  • Learning syntax for a new language is nothing compared to learning how to avoid the innumerable ways you can go tremendously wrong.
  • Ethereum applications have no possibility of having non-deterministic behavior.
  • It is needless to manage ‘undo’ state in Ethereum because any exception found automatically rolls back all changes (with the exception of the fee).

How is it different from other cryptocurrencies?

The one thing that sets it apart from the rest is its technology. As it is described, it is the first modular cryptocurrency using sidechains. What it means, basically, is that instead of utilizing a public ledger to store all the transactions, the Lisk network operates in modules. Developers and anyone else using the central or main network branches away to form a side chain. By doing that, the central network remains unencumbered. Transactions are still processed as usual on a sidechain just like using the main Blockchain.

lisk blockchain

This type of design eliminates one major flaw in most Cryptocurrencies, which is bloat. If all use the same Blockchain, then it is inclined to be slow in processing transactions. Hence, Lisk determines to be faster all the time. Besides, it is built with scaling in mind, and that is why it will not suffer like Bitcoin.

Other than the side chains, various other things are done differently too – using Delegated Proof of Stake (DPoS). DPoS goes even further than the PoS from Ethereum’s Casper update. Depending on the number of LSK held, anyone can become a delegate, but the maximum is 101. Such delegates are responsible for making decisions so that there is no miner centralization.

Lisk was designed with a pretty similar goal like Ethereum’s -to allow for the creation of decentralized applications (dapps). The target audiences are the developers that can create their own apps using JavaScript and reap the benefits of Blockchain technology. On top of that, they can even create their own tokens for their own applications.

Lisk in the cryptomarkets

It just surpassed the 1 billion dollar market cap ceiling recently. Considering the fact that this company was launched about less than two years back, it is still brilliant growth. As a fact, when it was launched, it did so through an ICO that netted as much as 14,052 Bitcoins. Considering present bitcoin value of $13,000, it is around $182 million, which is greater than any other successful ICOs till now.

The main factor of its development is its potential applications with dapps, competing against Ethereum. If developers start to prefer to utilize it over Ethereum, then it will definitely see more development in 2018. On top of that, there is a great team behind this project, and this gives investors greater confidence in the company. It will definitely continue to rise further in 2018.

Where to buy LSK?

The value of LSK-BTC on the Poloniex exchange was 0.00039, which is very low. From a contrary view, this makes Lisk a good buy as the relatively low value at this time suggests there is less resistance to the market moving up rather than down.

Since Lisk went on the market on May 24th its value experienced an initial leap against BTC and then steadily decreased since mid-June. Recently, it gained greater investor demand and its valued rose against BTC. Currently, we can purchase it on a range of cryptocurrency exchanges including Poloniex, BitSquare, Jubi, Touzibi, OpenLedger, Changelly, Bloombit, YoBit, and Bittrex using BTC, ETH and various Cryptocurrencies.

How to buy Lisk on Binance

Step 1: Create a Binance account HERE

You must first create your Binance account. The process is very easy. You must only give your valid email address and your password.

Step 2: Activate the Account

Once you finish creating your account, an email will be sent from Binance to activate the account. Open the received mail in the inbox and click on the activation link.

Step 3: Log in

Go to the Binance website and log in to your account with your mail and password.

Step 4: Transfer Funds to your wallet

In Binance, you can only buy LSK tokens by using ETH or BTC. Hence, it is necessary to transfer some BTC or ETH to your Binance wallet.

Step 5: Buy your LSK tokens

Click on the Exchange tab and then Basic on the above navigation bar. On the top right, select BTC or ETH and look for LSK/ETH or LSK/BTC.

You can open the trading view of the cryptocurrency you want to exchange. Look for the Buy/Sell part of the page and give your Buy order. For Binance review:

Binance Review

LISK Wallet

Investors who are looking to own LSK coins have to get a way of obtaining the Lisk token, the LSK. The right way of doing this is to purchase a more popular crypto coin like BTC or ETH and exchange it for Lisk.

We can choose to store the LSK coins in the original exchange (where they have been acquired after exchanging the BTC or ETH) or you can choose to transfer them into a Lisk wallet. Storing your LSK coin on the exchanges is not very safe, especially because they are online stores very vulnerable to online scams and hacks.

The best place to hold your LSK coins is in the wallet. LSK wallet is available for Windows, Linux and Mac operating systems. There is a web Lisk wallet as well, although it is not very popular among investors.

To access the services of the wallet, these are the following steps to install the wallet:

  1. Download the wallet from the official website.
  2. Install the wallet on the device you are having.
  3. Open the installed wallet on your device and create an account.
  4. Obtain a secret password, keep it safe and verify it.
  5. You can now send and receive LSK coins from and into your wallet respectively.

Is Lisk a good investment?

The future price performance of LSK is dependent mainly on the success of the network and the utilization of its technology by programmers, developers, and start-ups. LSK is not a digital currency like Bitcoin which can be used to sell and buy goods and services. That is why; no merchants will likely ever accept the cryptocurrency as a means of payment for buying and selling like BTC. Therefore, the major drivers will be technology acceptance and investor interest, with the two having to go together in the cryptocurrency market as ETH has shown.

Putting a little amount of money into LSK could maybe turn out to be a quite lucrative investment. Seeing that Lisk uses JavaScript as a programming language, which is very popular among technology majors such as Microsoft and Google, the probability of its developer base increasing and accepting Lisk as a network to build apps on is very high.

It has acquired a partnership with Microsoft Azure, meaning that developers worldwide can develop, test, and deploy LSK Blockchain apps using Microsoft’s Azure cloud computing platform and architecture. But, there is a risk that if more superior Blockchain that have similar functions come up, then the price will probably drop greatly.

LSK is a riskier investment than ETH because demand for the development of smart contracts, mostly from the financial industry is great. Also, knowledge of programming is necessary to fully understand the system and may prevent some investors from getting on board.

While LSK does well in terms of developer participation, it lacks liquidity, with low trading volumes on exchanges, and has to build a bigger community around itself to create more discussions on social media compared to more successful Cryptocurrencies like BTC or ETH.

Still, the potential reward for investing now is also great. The reason being that the main advantage over Ethereum is that all LSK apps run on their own Blockchain, i.e. the ‘sidechains’ that could provide a greater advantage in scaling to a mainstream audience.

LSK as an investment will only do well in the long run if the network becomes a leading Blockchain technology for start-ups to build new applications over the next year or so, which was looking very promising.

Conclusion

LSK ranked 8 on CoinGecko’s cryptocurrency ranking. It also ranks as an altcoin with the 14th biggest community and also the 13th most active development. As LSK continues its development in the future, it has had an improvement in its rank on CoinGecko.

On the basis of research, LSK has greater “knowledge” criteria which pose an entry barrier for people not well-versed with coding, so in order to completely understand and acknowledge how it works, a background in programming is required. Like other altcoins, it is also not immune to longevity. Since LSK cryptocurrency is relatively new, only time will tell if it has what is required to take off among mainstream JavaScript coders. Nonetheless, there are definitely encouraging signals that they are going in the right direction.

A frequently asked question about Lisk is “Is Lisk a scam?” Before declaring it as a scam, we must have apt knowledge about it. Lisk is a brilliant technology and must not be judged as a scam by negative reviews. Users need some time to get accustomed to the advancing technology. We can create our own apps and tokens on the same Blockchain, without causing damage to the centralized chain. This is an exceptional technology for existing developers and cryptocurrency users.

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