While Bitcoin has gotten the most attention, other cryptocurrencies, commonly known as altcoins, should not be overlooked — either because they show even more tremendous promise than Bitcoin or because individuals contemplating investing in cryptocurrencies should diversify their portfolios. Here’s a platform where you may get to know the cryptocurrencies you are interested in.
In 2016, a blockchain application platform was founded by Max Kordek and Oliver Beddows. It is currently ranked as 118th in the list of cryptocurrencies by market capitalisation. The said platform is known as Lisk.
This article will get to know more about Lisk—its history, function, benefits, and more. Let us start with its history!
Lisk (LSK) was created as a fork of Crypti, a prior cryptocurrency project founded by Max Kordek and Oliver Beddows. It is headquartered in Zug, Switzerland, the home of “Crypto Valley.”
To determine the first coin distribution and collect development money, the LSK tokens were initially sold to the public through an Initial Coin Offering (ICO). The ICO raised 14,000 BTC and was the second most successful crypto-currency crowd-funding at the time.
What is Lisk?
A sidechain works in the same way as a conventional blockchain. A genesis block determines its starting state. Authorised parties contribute blocks to the blockchain, which private network agents then validate. The sidechain protocol defines the supported transaction types. At the moment of bifurcation, the sidechain is connected to the blockchain, but future modifications on one sidechain do not affect the main blockchain, which is operating in parallel. As a result, any performance or security issues on one sidechain impact the main network.
Lisk’s Consensus System: Delegated Proof-of-Stake (DPoS)
The Delegated Proof of Stake (DPoS) consensus method is Lisk’s preferred protocol. It is a consensus process in which several delegates are responsible for preserving irrefutable truth throughout the network and verifying transactions.
Delegated Proof of Stake achieves agreement by combining real-time voting with a well-known social structure. It functions as a sort of digital democracy since each token holder may vote for “delegates” to influence what happens on the network.
What are the benefits of Lisk?
- Increased security– on sidechains, dApp transactions may be controlled. Even if a sidechain is hacked, it is separated from the main chain, ensuring that the main chain is unaffected.
- Flexibility in creating many services – sidechains can introduce new features and revisions without requiring any specification modifications on the main chain, allowing for rapid and low-risk implementations.
- Enhanced transaction processing capacity– using sidechains and the main chain provides for more transaction processing power, which reduces transaction confirmation time.
- Using Smart Contracts – Lisk also supports innovative contract technology. These contracts are stored on the blockchain. Smart contracts eliminate human execution requirements by allowing for automated performance if a set of pre-programmed criteria is satisfied.
How to buy Lisk (LSK)?
LSK tokens can be purchased, sold, and traded on many crypto trading platforms. Once you decide on investing in LSK, it is also worth noting that cryptocurrencies are highly volatile, so research them. And if you are looking for a more convenient and beginner-friendly trading journey, Bitcoin System is a recommended platform for you!