Lisk is the platform for creating decentralized applications. Its network uses LSK tokens. The first 100 million tokens were created simultaneously during the project creation. The cryptocurrency is inflationary, the number of coins increases with each new block. The ICO project was held in 2016. The open-source code is written in the PostgreSQL programming language. The fee for the transaction is stable and is 0.1 LSK.
How does the Lisk consensus algorithm work?
The Delegated Proof of Stake (DpoS) algorithm is used to confirm transactions between crypto nodes. Crypto nodes that have the right to confirm transactions are called delegates. The total number of delegates is 101. To become a delegate, it is necessary to have at least 100 LSK coins in your account, as well as to get as many votes from other members of the network as possible. Profits from transaction processing are divided between a delegate and the members who gave their votes to him. The delegate's Lisk node shall always be online in order not to be deprived of the right to process transactions. If the required Lisk node is offline, the right to process the transaction will pass to the next delegate in the queue. The choice of the delegate shall be made as follows. A user, who wants to vote for one of the public crypto nodes of delegates, goes to his purse and clicks the list "Delegate selection" there. It is necessary to pay 1 LSK coin for voting, and it is possible to choose up to 33 delegates. Each delegate LSK node has its amount of reward, which it shares with those who voted for it.
How does the Lisk blockchain work?
Blockchain is stored on miners' computers and ordinary users do not need to download the whole blockchain. Besides the main blockchain, there are sidechains on the network. They are designed to support custom applications and tokens. Sidechains synchronize transactions and other information with the main blockchain network. Thus, the project is not limited to scalability and security as each dapp is executed within its sidechain. The creation of bugs or instability in any of the sidechains by an attacker will remain closed within it and will not affect the entire network.
How do the LSK node work?
Users can install software for full LSK nodes (Core). In this case, he will start receiving a reward for confirming transactions and will also be able to develop dapp based on sidechains. To create a dapp, there is a Lisk JS library written in JavaScript. It can either rely on a full LSK node or use a remote connection to other cryptocurrencies’ nodes. To interact with the Lisk node there is a command-line tool called Lisky. For most users, it is sufficient to install software for the lightweight Lisk node (Nano). Its functionality is enough to send and receive transactions, vote for elected delegates, and create a seed phrase. To synchronize with the main blockchain, the lightweight Lisk Nano node connects to the nodes that support the Lisk Foundation.
Further development of Lisk
The Lisk project is dynamically developing, software updates for cryptocurrencies nodes, and Lisk wallets are regularly released. The common programming language JavaScript is used for writing decentralized applications. There is an SDK for debugging applications. Back-end Dapps are written in NodeJS and JavaScript, and Front-end in CSS3, HTML5, and JavaScript. There are smart contracts on the network, but their functionality is inferior to contracts on the Ethereum network. Lisk's smart contract system is very complex. Smart contracts rely on selected LSK nodes "delegates" to confirm their contracts, as well as data verification using the Ethereum and Bitcoin networks.
