What is Lisk?
Lisk is a distributed application construction platform developed by Max Kordek and Oliver Beddows. The crypto assets used in the platform is also called Lisk (LSK).
Distributed applications, referred to as DApps (Decentralized Apps), are able to operate even without a central manager such as a business or bank.
DApps allow all participants to manage the distributed data and be involved in decision-making on things such as specification changes.
It is possible to process remittances in as little as 10 seconds, making high-speed remittances possible. While the upper limit of Lisk to be issued has been set, the amount issued is decreased every 3 million blocks.
Merits of Lisk
In addition to the main Lisk blockchain, there are also sidechains in use. Sidechains are auxiliary blockchains which are connected to the main blockchain.
Some advantages of sidechains include strengthened security, improved transaction processing power, and the flexibility to create various services.
The transactions of DApps can be managed on sidechains. Even if a sidechain is hacked, it is isolated so that the main chain does not suffer any damage.
Improved transaction processing power
In addition to the main chain, using sidechains allows for improved transaction processing power which keeps the transaction confirmation time low.
Flexibility to create various services
New features and revisions can be implemented on sidechains with no need to make any specification changes to the main chain, allowing these implementations to be performed quickly with a low risk.
Differences from Bitcoin
Bitcoin stacks and connects transaction records on a blockchain to prevent forgery. On top of this, Lisk also allows for smart contract technology wherein these contracts are also recorded on its blockchain. Smart contracts allow for automatic execution once a set of criteria that has been programmed in advance has been met, removing the need for manual execution.
While Bitcoin uses mining, Lisk uses a confirmation system called forging.
Lisk utilizes a consensus algorithm called DPoS (Delegated Proof of Stake). Under DPoS, 101 people are chosen by Lisk owners to perform transaction confirmations.
The voting rights are assigned by the possessed volume of Lisk. Among them, 101 people are chosen to perform confirmations. These 101 people are rewarded the transaction fees and newly issued Lisk for the transactions that they confirm.
This process where only the 101 people chosen by Lisk holders can confirm transactions is called forging.