Lisk (LSK) Review 2022

About Lisk (LSK)

Lisk is the platform for facilitated development and usage of decentralized applications. Unlike Ethereum or BNB Chain, it allows building each dApp on a dedicated sidechain, which improves the scalability of decentralized applications.

Lisk strives to become the most accessible blockchain application platform in the world. Here’s what this means:

• For developers, the process of dApp creation is simplified compared to competitor platforms. The platform offers developers to leverage Lisk SDK – a development kit that minimizes the amount of code necessary to launch a dApp. Moreover, all sidechains are built using JavaScript – the world’s most popular programming language that most non-blockchain devs are familiar with.
• For users, the access to dApps is simplified with the following solutions:
  • A fiat on-ramp allows them to buy LISK with a bank card directly in the official wallet.
  • A recently launched decentralized exchange facilitates swapping the platform’s native LSK token to other Lisk-based assets.
  • If a token that the user needs is based on another network (like Ethereum or Cosmos), it will be possible to bring it to Lisk via dedicated bridge (we will review those in more detail below).

One of Lisk’s goals is to attract 100 million users in its ecosystem. Lisk was launched in 2016, and its SDK helps devs build dApps easier since 2019. The platform frequently undergoes independent audits to prove its credibility.

Lisk (LSK) Team

Lisk is governed by the Lisk Foundation – a non-profit entity launched in 2016 and based in Zug, Switzerland. It ensures the transparency of Lisk growth and funds it from a $100-million reserve. The Foundation also supports developers who build dApps on Lisk using the platform’s SDK. Anyone can apply for its $1.3-million grant program.

Lisk was founded by Max Kordek – a blockchain entrepreneur and visionary from Germany. He was a member of a startup community from his early years, and one day in 2012 he learned about cryptocurrency and Bitcoin. That was the time Kordek decided that he wanted to unleash the potential of blockchain by making it more accessible.

In 2016, Max Kordek teamed up with Oliver Beddows to launch Lisk. Beddows is the Lisk CTO and a developer with 12 years of experience. As blockchain technology emerged, he saw how it could make the world a more equitable place, but there were obvious difficulties with attracting developers – Web3 required some outstanding coding skills. This is when Beddows decided to facilitate blockchain app development.

At the turn of 2021, Max Kormak announced that Lisk is to expand its team up to 80 members and beyond. They will join the Lisk Foundation as well as Lisk contractors – Lightcurve, Waxman, NinjaPromo, and others.

Lisk (LSK) Roadmap

Lisk displays an illustrative roadmap on their website, featuring 6 phases:

The current Sapphire phase began in August 2021. Its key focus is interoperability: Lisk seeks to ensure good cooperation between all of its sidechains. The topic is being researched, and numerous Lisk Improvement Proposals (LIPs) are published. When interoperability is live, the Lisk blockchain application platform will be launched.

Here are some other objectives during the Sapphire phase:

• A Lisk cross-chain messaging protocol will be defined.
• The team will elaborate the order of sidechain registration.
• Token standards for the Lisk ecosystem will be introduced.
• Lisk-BFT consensus mechanism will be updated in order to achieve interoperability. Other changes in consensus will concern sidechains: an alternative validator selection mechanism will be introduced.

Lisk (LSK) Network

As mentioned above, difficulties with onboarding new developers in the blockchain world is the core problem that Lisk aims to solve. However, there are two other major challenges it addresses:

• Scalability. Here’s how Lisk describes problems inherent to Ethereum and other similar networks: their blockchains are robust, but if you put hundreds of dApps on each of them, they won’t be able to scale. This is why at Lisk, every dApp is built on a dedicated sidechain. No other applications can congest this chain, so it can scale.

• Interoperability. Most existing dApps are uninteroperable, but this is not critical as they are located on one single blockchain with many other applications. When it comes to building dApps on sidechains (separate chains), there has to be a solution to ensure easy asset and value transfer between them. This is why Lisk is working now to implement interoperability solutions in its sidechain ecosystem.

  Moreover, as Lisk sees Web3 interconnected, it strives to build symbiotic relationships with other blockchains as well. The platform’s interoperability objectives include creating multiple bridges that will connect Lisk to major public blockchains. This will allow users to easily engage with cross-platform DeFi, NFT, or metaverse blockchain applications.

Lisk blockchain

Lisk runs on the Delegated Proof of Stake consensus algorithm. Blocks are generated every 10 seconds by delegates; every Lisk account can become a delegate, but the right to forge blocks is only granted to network members with the highest delegate weight. This weight is determined by the number of votes a delegate receives.

Also Lisk leverages the Lisk-BFT consensus protocol. It describes how delegates choose the chain they add blocks to and how a block becomes part of the immutable distributed ledger.

How to Mine Lisk (LSK)

Lisk is a non-mineable cryptocurrency as it operates on the DPoS consensus algorithm. However, you can receive LSK by participating in the block forging process. For instance, you can vote for delegates – each vote is rewarded with 1 LSK; 25 LSK is necessary to sign up for voting. You can also run a delegator node and receive rewards for network maintenance set at 5 LSK for 1 produced block. But it is quite hard to install a Lisk node, and perhaps the easiest way to get some LSK is to buy it at an exchange.

Lisk (LSK) Value Data

At the time of writing in August 2022, one Lisk token is valued at $1.26. Its market cap is $162,9M, and with nearly 129 million coins in circulation, LSK stands at the 162nd position on CoinMarketCap.

The value of LSK is largely affected by the policy of Lisk Foundation that has $100 million in reserve. It holds 1,000 BTC in a long-term fund, but the Foundation wants to cover their expenses until 2025 to become more resistant to market volatility. Thus, 620 BTC will be gradually liquidated: 34% will be swapped for fiat to fund short-term expenses, and 66% will go to stablecoins and the BlockFi protocol. This money will help Lisk raise passive yield and continue investing in development and the grant program for dApp builders.

As the Bitcoin reserve is limited, Lisk is planning to create a revenue stream by building Lisk-based exchanges and interoperability bridges. Lisk Foundation states openly that it wants to become sustainable rather than prone to pump-and-dump movements.

Lisk (LSK) 2022 Price Prediction

Most price prediction services are moderately bullish about Lisk:

• TradingBeasts expects that the average price of LSK will be $1.35 in December 2022, $1.84 in December 2023, and will possibly hit $3 by 2025.
• CryptoNewsZ forecasts that Lisk can cost $2.6 as early as in 2022 and $3 in 2023.
• GOV Capital gives LSK $2.5 in one-year perspective (a 72% growth) and a whopping $7.9 in 5 years.
• DigitalCoinPrice predicts that the token’s average price will stand at $1.82 in 2022 with a maximum at $1.94. According to the service, LSK mean value in 2023 will hit $2.01, but the token will cost $3 no earlier than in 2027.
• WalletInvestor considers Lisk a very good one-year investment: it believes the coin can be sold for $1.91 in June 2023 and for $4.1 in 2027.

Keep in mind that price prediction services mostly rely on technical analysis and may miss some fundamental factors including the further growth of the Lisk ecosystem. Please be cautious about any price predictions, don’t take them as investment advice, and do your research before making investment decisions.

How Can I Buy and Trade Lisk (LSK)?

Lisk is a popular coin, and you can buy it on most centralized exchanges and instant exchange services. Before we describe an easy way to purchase LSK, let’s consider the best wallets where you can keep your Lisk coins.

Lisk (LSK) Wallets

The official Lisk Wallet is the best solution if you are planning to engage with the ecosystem and make the most of Lisk. The wallet is available for Windows, iOS, and Linux. It offers the full spectrum of LSK features: Lisk account creation, storage and transfer of funds, voting for delegates, monitoring the Lisk blockchain with a built-in explorer.

Atomic Wallet is a handy multi-currency solution if you want to store Lisk together with the rest of your crypto portfolio. It supports 500+ cryptocurrencies, allows swapping them and buying Lisk with a credit card without leaving the wallet. Atomic is available for all popular desktop and mobile operating systems, so your crypto is always at hand. The wallet is non-custodial, which means only you have access to private keys.

Ledger Nano is a hardware wallet where you can store your LSK offline. Enhanced security features make Ledger one of the most protected ways to keep your crypto portfolio. You need the physical presence of the wallet to send transactions with Ledger, but it’s still rather easy to use. In our recent article, we thoroughly reviewed Ledger and other hardware wallets.

Lisk (LSK) Crypto Exchanges

ChangeNOW is an instant cryptocurrency exchange service where you can buy Lisk without registration. Simply indicate the currencies and the amounts, enter your LSK address, and deposit the necessary amount of crypto – you will receive your Lisk tokens in several minutes. As a non-custodial service, we never have access to your private keys. Partnerships with multiple liquidity providers allow us to search for the best exchange rates, so rest assured we offer you the best Lisk price available.

Until December 2022, the ChangeNOW cashback program is active: sign up for ChangeNOW Pro and receive 0.1% in NOW Tokens from every exchange you make. The feature is available for website, mobile app, and NOW Wallet users.

Lisk (LSK) Summary

Lisk is a platform that facilitates the creation of blockchain applications. Developers can build a Lisk-based dApp with simple coding tools and JavaScript language, and each application is based on its own sidechain, which makes it highly scalable. Lisk is currently working to make these sidechains interoperable, so we will see a robust interconnected ecosystem of Lisk dApps in the near future. The platform is managed by a professional team and the Lisk Foundation with a conscious approach to resource distribution. Most price prediction services are moderately bullish on Lisk. If you feel like diversifying your crypto portfolio with LSK, we welcome you to visit ChangeNOW and see what rates we offer.