What does Lisk Coin mean?
Lisk Coin is a blockchain application platform that was first created in early 2016. Based on its own blockchain network and LSK token, the platform enables developers to create, distribute and easily manage distributed blockchain applications.
You can implement your own page chains linked to the project network, including the user log, into the Lisk blockchain. Because of the flexibility of the page chains, developers can fully implement and customise their blockchain applications.
Lisk is a cryptocurrency and a platform for decentralised applications. As a cryptocurrency it is similar to the likes of Bitcoin, offering a decentralised payment system and a digital money network.
The network itself works with a highly efficient, delegated proof of stake (DPoS) confirmation model that’s protected by 101 democratically-elected delegates. Lisk is also a platform for decentralised applications, allowing for the distribution and monetisation of DApps.
Users can produce specialised blockchains on Lisk’s blockchain. Lisk Coin allows developers to create and publish applications associated with their own blockchain. Lisk is an open source platform and was first unveiled in 2016.
Initial Release and Developers Responsible
The first unveiling of Lisk Coin came in May 2016 as a spinoff from Crypti founders and developers, Max Kordex and Olivier Beddow. The Lisk Coin blockchain has, like other blockchains, its own LSK currency within the platform.
Lisk Coin is often compared to Ethereum. Both Lisk and Ethereum are blockchain-based platforms, allowing developers to build applications.
The platform enables developers to create blockchain-based applications that allow a connection to Lisk Coin’s own blockchain. Ethereum allows developers to build so-called decentralised applications within a virtual machine on Ethereum’s main blockchain.
Lisk – A Distinct Entity
Lisk builds on the delegated proof of stake (DpoS) algorithm, which was originally designed by BitShares. Lisk Coin differs from traditional blockchained PoS in that only the top 101 delegates (as decided by individual voters) provide active support and network security.
The Lisk DPoS protocol works in a series of rounds, with each round consisting of 101 individual blocks.
What is the Difference Between Lisk Coin and Ethereum?
Lisk and Ethereum are often compared to one another. Both platforms are systems based on blockchain technology and aim to extend the original idea of Bitcoin-blocking to create more decentralised applications.
While Ethereum refers to its applications as decentralised applications or DApps, Lisk chooses to refer to its own as blockchain-based applications.
Other Key Differences Between Lisk and Ethereum Are:
- Lisk uses delegated proof-of-stake algorithms, while Ethereum may switch to PoS consensus, but currently uses PoW.
- Lisk uses page chains to store applications, while Ethereum stores applications in the main blockchain.
- In Lisk, application problems often require developers to create a hard fork of their page chain. With Ethereum, applications run on a virtual machine, with all errors leading to a waste of transactions that are processed in the virtual machine itself.
- Unlike Ethereum, Lisk does not have a virtual machine. Its virtual machine is more simply known as the EVM.
The developers of the new fork decided to use an original method of coin mining that differs from traditional practices. This method is called “foraging” and is based on the PoS algorithm.
The main difference to conventional mining is that not all project participants are involved in the extraction of coins. Instead, only certain individuals from the inner circle of delegates are involved.
All the remainder will instead vote for these delegates and receive currency for their efforts. Those who join the elite are able to create their own private pools and mine coins freely, which ultimately benefits everyone.
The Mining Process
In short, the algorithm that is utilised here frees up participants from the hassle of self-fulfilment. All of the coins that delegates have mined are distributed according to how much of a stake each individual voter has in their wallet.
The person holding more Lisk currency in the system will receive a larger share after the end of the next production period. An impressive 95% of what delegates can potentially retrieve is allocated for wider distribution.
For each block generated last year, you could expect a reward of 5 coins. Over the next few years, the reward will decrease until it reaches a single coin per block. It will remain on that level thereafter.
Over time, the developers promised to reform the extraction algorithm as it proved unpopular with many users who championed decentralisation. Many users suspected it was simply a means for developers to create layers of control within the system.
A delegate is nothing more than a special type of account. To access the available list of delegates, you need only register for an account with this provider. There is a registration fee to consider.
The delegates are both active and passive. The 1-101 positions are active delegates. All of those below the list are passive and classed as reserves.
The place of the delegate on the list is ultimately determined by the vote of the project participants who cast their votes at their own discretion.
Conclusion on the Lisk Coin
Lisk Coin is a plug-in development platform that is open to the public. Developers can create applications on the platform and then run their own page chains separately from the main disk blockchain. This gives platform developers a number of unique opportunities.
Lisk has signed an agreement with Microsoft to integrate Azure Blockchain as a Service (Baa3).
This means that developers around the world can develop, test and publish applications for Lisk by using the cloud computing platform and Microsoft Azure infrastructure.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.