Lisk is a cryptocurrency that aims to serve as a platform for decentralized applications (dApps), specialized programs designed to run on a network of computers running shared software.
However, Lisk allows developers to create dApps and custom cryptocurrencies through what it calls “sidechains”, unique blockchains that operate within the Lisk network. This side chain is tied to the Lisk blockchain and can be customized to meet the needs of Lisk dApps.
LSK is required to pay for major operating costs and for voting on proposed updates to software rules.
One of the earliest blockchains for dApps development, the Lisk team has been continuously updating its roadmap status to its users via its official website since 2016.
How does it work?
The main software implementation for networking, Lisk Core, enforces protocol rules, keeping the computers running in sync and operating smoothly.
The Lisk software development kit (SDK) is used to build decentralized applications ( dApps ) compatible with Lisk Core.
The SDK contains three components:
- Lisk Framework – which facilitates interaction between dApps modules
- Lisk Elements – a set of coding libraries
- Lisk Commander – a tool that allows users to interact with the blockchain.
Delegated Proof-of-Stake (DPoS)
To secure its blockchain and keep its distributed network of computers in sync, Lisk uses a consensus system called delegated proof-of-stake (DPoS).
DPoS leverages a real-time voting system to determine which computer running the software can create the next block on the Lisk blockchain. This means anyone with an LSK can help operate the network.
Each LSK token can be locked, or staked, to represent a vote. All owners who staked LSK then elect 101 active delegates, who are responsible for creating blocks.
There are a total of 101 blocks per cycle, with about 10 seconds between each new block. Each block cycle is approximately every 16 minutes.
For proposing and adding new blocks to the Lisk blockchain, active delegates receive the total transaction fee of the block and the reward (paid in LSK cryptocurrency).
Active delegates can also choose what percentage of LSK they receive to share with users who elect them as active delegates, which in turn incentivizes voters.