The growth of cryptocurrencies like Lisk is not at all a surprise, this because more and more companies and developers have set their eyes on this business. And it is that the boom of digital currencies seems to be happening right now with the improvement of the technology behind them.
That is why it becomes essential to analyze which are the main currencies in the market in order to know how to make investment decisions and be prepared for the future. Here we will talk about Lisk, a cryptocurrency that is so promising that Microsoft has joined it.
▶ What is Lisk?
As we already anticipated you, Lisk is a cryptocurrency which not only stands out for its token but it is a whole platform focused on creating Blockchain solutions. Its main objective is the business market which has its own blockchain called Mainchain along with its LSK token.
The main characteristic that we can find is that this environment allows us to develop, create and manage our own decentralized applications using the Blockchain through Java Script language. For this, a sidechain or lateral chain is created which is joined to the main Blockchain.
This makes the complexity of developing applications much less, since it allows you to develop the applications not entirely from scratch, but with a foundation. This makes it much easier to create apps and programs, in addition to reducing costs.
Thanks to this sidechain system, unlimited sidechains can be created without affecting the solidity of the main Blockchain. This is a great advantage, since provides the benefits of blockchain as security while developing custom platforms even with the possibility of having your own Token.
Each of the LSK coins, when executed, generates a sidechain, which is a copy of the main blockchain. In case of any failure or hack, the sidechains keep the data of the cryptocurrencies, as well as the same coins, safe within the main chain.
It is said that this virtual currency has raised many expectations because the possibility of creating sidechains makes the development of new Blockchain-based apps easier. In addition, such has been the level of expectations that Microsoft has decided to add this cryptocurrency to its Azure program.
▶ Differences between Bitcoin and Lisk
- More than a means of payment: Many people might think that Lisk is like Bitcoin, a virtual means of payment. This is not actually so, since Lisk focuses on creating an environment that helps to easily develop Blockchain and token technologies.
- Lisk Academy: Few companies make an effort to positively impact their community. In the case of Lisk we can find that this has promoted the creation of an academy which seeks to train entrepreneurs in the area of Blockchain to help the development of this technology.
- There is no mining: Because the maximum amount of Lisk was released on the market, 100 million coins, it is not possible to mine these coins. This amount was released during the sale process to the public, which is known as ICO.
- Limited number of coins: Compared to other digital currencies which have a number of coins that may not be unlimited, but much larger in volume. Lisk has its number limited to 100 million LSK, which allows its inflation and volatility to be controlled efficiently.
- Safety: Finally, you should know that having sidechains or side chains offers much greater security when operating with Blockchain. This is because, if a side chain is violated, it can isolate the attack thus preventing it from affecting the central chain.
▶ Technology behind
Most cryptocurrencies maintain centralized operations and transaction information, that is, they focus solely on the Blockchain. Instead, Lisk operates through a Mainchain or main chain which is interconnected to side chains known as sidechains, which operate independently, but interconnected.
The main problem with the Blockchain is that the scalability is limited, as well as the transaction processing capacity is not very great. By using sidechains it is possible to solve this problem because the sidechains work as decentralized applications releasing load to the main chain.
Sidechains are responsible for processing transactions independently, although they are interconnected to the main chain, Mainchain, thus transferring the information. In order to speed up the process, Lisk incorporates Lightning Network, an exclusive technology which allows to increase the speed of transactions and their validation.
To secure the transactions and the validation process, Lisk incorporates the famous DPoS concession algorithm. The number of delegates that we can find is 101, which can be said to be neither very large nor very low. Thus, in the event of failures, the risk of damage to the Mainchain is reduced.
▶ How can I get coins?
Because there are no options to mine Lisk, we can only find one option available to have Token LSK. This option is to buy virtual currencies, for this we have the advantage that Lisk is a very popular virtual currency.
That is why we can find it available in different exchange houses of great prestige in the market. In addition, we can find them in very common pairs such as Bitcoin or Ethereum, in the same way we can find them with pairs in conventional currencies such as dollars and euros, to mention examples.
Financial analyst and economist with a master's degree in finance.