September 4th, 2017 |Leon Gaban On Twitter @leongaban
This article was originally published on Medium, follow this link to the original article (https://medium.com/cryptocurrency-citizen/crypto-citizen-review-lisk-the-blockchain-app-framework-e39ca3138200)
The Crypto Citizen Review is a sub series of my articles where I take a deeper look into a certain interesting company, or cryptocurrency. My thoughts are just opinions and speculation and not investment advice.
Discovery of Lisk
They don’t use Slack like most cryptocurrency companies, but an open sourced project Rocket Chat for their general community chat, and just like a lot of pro open source teams, Gitter for dev communications 😉
The Lisk Advantages
Lisk(name derived from Obelisk) has several advantages and improvements over similar blockchain platforms out there. Below are the 3 main points that stand out.
- Dapps run on their own sidechains
- Delegated Proof of Stake vs PoW(Proof of Work) and PoS(Proof of Stake)
The Lisk White paper doc, (even their white paper is designed as developer documentation)
A comparison graphic between Lisk and Ethereum.
Being built from the ground up for JS developers was a smart decision, as this will help drive adoption, and development speed on their platform. Their target user base are developers and companies looking to get their ideas bootstrapped onto a blockchain.
Next, they have built in great scaling from the start with their sidechain system for decentralized applications. Each dapp can decide on what kind of protocol to run. They can create and use their own Tokens. If there is a problem in a sidechain, it will not affect the mainchain.
For governance and running the network, Lisk uses a simplified implementation of BitShares’ original consensus algorithm called Delegated Proof of Stake .
“That means every Lisk(LSK) holder can vote for mainchain delegates which are securing the network. There are only a maximum of 101 active mainchain delegates which always got the most votes on the whole network, and only they can earn block generation rewards, that means there is a financial incentive to become an active delegate. Every other delegate is on standby awaiting to become elected, or alternatively, securing a Lisk sidechain.”
Sidenote on the nomenclature of coins and tokens.
Lisk and Ethereum are both coins with their own blockchain. The currency for the projects on Ethereum are called Tokens, which all use the same Ethereum blockchain. Projects on Lisk are new coins which have their own blockchain which could then host token based projects themselves.
Delegated Proof of Stake
There are no miner centralization issues nor the extreme usage of electricity with Lisk. Also whales just sitting on their holdings are nullified as with the DPoS system. Any top delegate can be voted out if they are not contributing to the network or giving back, and others voted in. Explanation of delegate voting further below.
A solid and transparent dev team
For a cryptocurrency project, the Lisk team has some of the best community transparency and communication out there. Each month or so they host a one hour Q&A YouTube session, and they recently just finished their first Reddit AMA.
They cover everything from current development, to new hires and take questions about the Lisk project. Team members are also very active in their chat channels and forums.
Founding and funds
In May of 2016, Lisk ran an ICO and raised a total of 14,000 BTC. And now with the rise in value in Bitcoin and the Bitcoin Cash split, the team has over $60 million in funds for a very healthy and long term development roadmap.
Lisk was founded by Max Kordek and Oliver Beddows, both of whom worked on the Crypti project before deciding to create Lisk. Lisk is actually a fork of Crypti as that project ran aground with a lack of management. They decided to implement the new Lisk forging rewards to create a better incentive to run security on the network among other code improvements.
After the ICO they created the Lisk Foundation which is based in Zug Switzerland to handle the legal foundation and hiring. The foundation has hired a new development team which is now based in Berlin. They also created the Lightcurve which is the company that the dev team is under. The plan in the future is for the Lightcurve team to help other companies develop and build on Lisk.
Here on their blog the team goes into deep detail about their roadmap plans. They are currently in the 3rd phase of their road map.
Inception, Resilience, Rebranding, Expansion, Ascent and Eternity.
This summer during their rebranding sprint Lisk is working with both rlevance (for customer experience and messaging) and Taikonauten (for brand design). In the coming months they will be releasing teasers of the new graphics and design language. With a full design overhaul of their website, explorer and apps deployed in Q4.
The name stays Lisk, and everything from colors, fonts to their logo will change(and I was just getting fond of their Warcraft style Obelisk ◕‿↼).
Next major item by the end of this year, is the much-awaited release of their SDK (Software developer kit). Once version one is out developers can start right away creating their blockchain apps.
In 2018 companies will start to launch ICOs on the Lisk platform, taking in LSK to fund their own roadmaps and development. The entire Cryptocurrency space as a whole is maturing faster and consumer and enterprise companies are increasingly looking to get into the blockchain space (web 3.0/Internet of money).
We should also start seeing more progress on similar platform based projects such as Stratis, NEO, Qtum, Ark and continued Ethereum token development. Platform coins/tokens currently have the most utility for Cryptocurrency.
How to obtain Lisk
First, you need to download the Lisk wallet from lisk.io. After you set up the wallet and save your seed phrase, you need to purchase some LSK. You can buy Lisk using exchanges like Bittrex and Poloniex, as well as trade for LSK using a service like Changelly.
There is a slightly higher rate you pay using Changelly, versus buying directly on an exchange. However it is great for convenience and the service does all the communication and transactions on your behalf between exchanges.
You can also receive LSK as rewards by voting for certain delegates that give a percentage back to their voters.
Here is a great guide which lists the 2 major pools in the Lisk community. On this page you can find a handy Lisk rewards calculator. There are several other pools and individual delegates who also give out rewards. The 2 biggest pools are GDT and LiskEliteGroup. If you vote for the LiskElite pool you need to verify your account with them on their website. You then have to setup an account so you can sign in and withdraw your rewards which build up over time.
Once you have LSK in your wallet, click on the Voting tab. You can vote for up to 33 delegates in a voting round and each round costs 1 LSK. So it will cost 4 LSK to vote for 101 delegates. You can change your vote anytime, however it will also cost 1 LSK to unvote.
If you want to become a delegate and try out forging on the testnet or mainnet(and get to create a fancy name linked to your account) it will cost you 25 LSK. There are currently around 1300 delegates and as the value of Lisk rises, the number of new delegates should slow down.
All delegates are currently competing with each other to get into the top 101 in order to forge blocks for LSK reward. Five LSK is rewarded every 10 secs for a block and below is the current math as to how much is rewarded per day to each delegate.
(8640 * 5) = (43200 / 101) = 427.72.
At current prices this is anywhere from $2500 to $3500 a day.
After the SDK is launched the Lisk team will also be working on the delegate marketplace, where all delegates get to rent their blockchain securing services out to companies that want to launch projects on the Lisk platform.