Lisk is among the many cryptocurrencies today. Even if many assume Bitcoin is the sole currency in circulation, Lisk is emerging especially in decentralization of blockchain applications (Bitcoin relies on blockchain technology heavily).
What is Lisk?
This is a public blockchain cryptocurrency, implying that it does not rely on central banks for regulation, instead using cryptography. Forked from Crypti by Oliver Beddows and Max Kordek in 2016, it began as an Initial Coin Offering (ICO) that decided the initial distribution.
It is unique among blockchain cryptocurrencies because each blockchain app is on its individual sidechain – meaning it has less scalability problems that many cryptocurrencies like Bitcoin face, and allows for greater customization on specific sidechains. This enables for the creation of projects that have specialized security algorithms, separate from the mainchain.
Why is Lisk different?
The Lisk currency bears similarities to Ethereum based on the development of customized side chains, but there are some differences with other currencies. These include:
Open source nature – it allows a clear summary of the activities of other developers, therefore allowing for further developments to the Lisk networks.
It has a modular system of operation. This means that varied applications are operational on the core, while the dApps operate individualized sidechains. This implies that the mainchain stays efficient, resulting in faster transactions.
Alternative coins to use
Lisk has the potential for increasing popularity with time. However, other coins provide viable alternatives, and we have put a list of some of them.
Ethereum/ETH – this is a 2015 decentralized software platform allowing smart contracts to operate without interference from third parties.
Bitcoin/XBT – the most famous cryptocurrency, from 2009. It is similar to Lisk because of blockchain application system.
Litecoin/LTC – launched in 2011, it is a highly sought after currency. Formed based on promoting open source payments without control from central authorities.
Cardano – thought to be an open-source digital currency, and constantly evolves itself from research and scientific philosophies.
Ripple/XRP – based on open-source internet protocol currency, and formed in 2012.
NEM – this is another blockchain currency from 2015, and utilizes Java script as well.
How Lisk works
Trading Lisk currency
You can only get Lisk coins in the blockchain networks, meaning you cannot purchase or store without the digital wallets. You need a wallet (digital) before you start trading the coins.
The drawback with Lisk is the current small supplies. Due to this, it is more advantageous to acquire Ethereum or Bitcoin first, and then acquire Lisk using them at currency exchanges.
Create your account on the site, download the wallet and launch the application
You will then get LSK tokens, that you can use on various cryptocurrency exchanges
You can then customize the features of your account
You cannot purchase the currency with fiat money (for instance USD), so exchanges also offer a viable option. You can use credit cards on some sites like Coinbase, though the transaction fees are higher than using bank transfers.
One feature to expect is the decentralized nature of the Lisk applications, and the fact that you can use blockchain technology. The SDK (Software Development Kit) has a role to play in this, because it allows each user to build these applications on their own blockchains.
Lisk prices and trading history
Lisk is among the newer currencies in existence, so the trading history is not extensive. The lowest it has reached in value is $0.00039 in early 2017, but investor confidence in it is increasing and its value is set to increase steadily.
Is it worth trading in the coin?
This question is complicated, since even experts generally see cryptocurrency as a risky venture with low returns. The reasons given usually cite the highly fickle nature, and the unpredictable rises and falls in value. Other voices however, point out to you the increasing value of investments in Lisk (and cryptocurrency generally) – emphasizing if you do not take chances, you will rue missed opportunities to make money.
Some of the pros in the currency include:
Has high efficiency levels in its operation
Very user-friendly, particularly for non-programmers
It does not have wide distribution, so does not have saturation
The risks are great, but you can handle them is you prepare yourself to bear losses in investments.
The rise of Lisk mirrors the increase in popularity of digital cash because people want to spend money without the bottlenecks of financial institutions. The benefits are many if you invest well and prepare yourself for changes in value, but it is best to do this wisely.