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Lisk (LSK): Beginners Guide On Sidechain and Its Protocol

  • Lisk is a blockchain platform that provides access to different Web3 benefits. 
  • It enables developers to build customised dApps and cryptocurrencies via “Sidechain”.

Lisk blockchain aims to serve as a platform to build decentralised applications and new cryptocurrencies which can be run across computer networks using shared software. It strives to build a cutting-edge platform with interoperability for open-source web3 applications and users can earn rewards by staking an amount of LSK over the network.

What is Lisk?

Lisk is a blockchain network that offers an ecosystem for developers to build their own blockchain, dApps and cryptocurrencies off the main network. Due to the network’s compatibility, developers can take advantage of its resources, such as coding libraries and  Software Development Kit (SDK) along with its utility token or cryptocurrency LSK.

It uses a different approach called Sidechain, a separate and independent network that runs parallel to the main blockchain. It enables developers to build a custom blockchain without affecting security and performance of the real one. Sidechains have their own consensus mechanism and governance token, offering the flexibility to design applications based on specific requirements.

About LSK

LSK is a utility token of Lisk blockchain, holding a good prominent position among other cryptocurrencies, being one of the more stable coins in the cryptocurrency market. LSK empowers Lisk blockchain and is used to pay for the key functionalities and voting for software update.

LSK is mined through the “Forging” process, which uses a proof-of-storage consensus mechanism. New LSK tokens are generated every time a block is created and the network allows a limited number of trusted miners (forgers) with an unknown maximum supply.

Lisk Sidechain: How Does It Work?

Lisk operates on the Delegated proof-of-stake (DPos) consensus mechanism, providing a remarkable platform like Ethereum. Lisk implements a Software Development Kit (SDK) and Sidechains, creating a complete developer-centric environment. LSK boasts a faster blocktime with only ten seconds, which is comparatively faster than some popular cryptocurrencies. 

Sidechains are a ledger system which is connected to the mainnet. Even though being connected, they do not impact the performance and security of mainnet. This feature enables fast transfer, tracking of assets, and interoperability. Lisk’s sidechain offers excellent scalability and makes sure that developers have full access to it. Additionally, bugs found in one network won’t affect the entire mainnet.

What Makes Lisk Different?

Lisk stands out from traditional blockchain systems as it was developed using JavaScript or TypeScript languages, allowing developers to add creativity to their applications through the Software Development Kit (SDK).

Lisk’s SDK consist of four parts:

  • Consensus Mechanism: It’s the primary default setting that uses the delegated proof-of-stake (DPoS) mechanism.
  • Sidechain: It helps build large blockchains that can be linked to the mainnet. Cryptocurrencies and dApps are developed using its capabilities.
  • Front-end: This manages the user-interface, which is essentially public.
  • Back-end: It is a custom set of codes that assist developers in building decentralised applications (dApps) without any restriction.

Conclusion

Lisk is a popular cryptocurrency and can be traded on various exchanges. Its developers also claim to be a JavaScript based Ethereum alternative. With its core values, it has started competing with other networks in the market. From the beginning, it has proven to be a stable network without major fluctuations in rates. Its development and token’s consistency makes it an excellent option.

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