LSK is the abbreviation and token of the Lisk project, aiming to create an ecosystem of Dapps (application software) based on sidechain technology, similar to Apples App Store.

The Lisk project split from the Crypti blockchain project in January 2016, with its mainnet launching in June 2018. Its unclear whether Lisk 1.0 will include sidechain technology.

How Lisk Works
Like BitShares, Steem, and EOS, Lisk uses the Delegated Proof-of-Stake (dPoS) consensus algorithm. There are 101 delegates serving as block producers. These delegates are elected through blockchain voting. The number of votes allocated to each account equals the amount of LSK it holds. Block production rotates among the 101 delegates, with each producing one block per round. Lisk supports 10-second block times, with each block rewarded with 4 LSK. With 10-second block times, over 12 million LSK are rewarded to delegates annually. The initial supply is 100 million LSK, leading to an annual inflation rate exceeding 12%.

As weve seen in BitShares, Steem, and EOS, the dPoS consensus algorithm is a trade-off: while fast and scalable, it sacrifices decentralization.

The Lisk Team
Lisk was founded by Max Kordek and Olivier Beddows, both coming from the Crypti project. According to a blog post by Lisk, they left Crypti in early 2016 after disagreements with other members of the management team and established Lisk. Little is known about Max and Oliviers individual histories prior to Crypti and Lisk. Currently, Max serves as President and CEO of Lisk, while Olivier is Vice President and CTO.

To build Lisk, Max and Olivier co-founded Lightcurve GmbH, a blockchain consulting firm, development studio, and marketing agency. More than 50 people work for Lightcurve, with Lisk being their sole client.

Project Highlights
LSK is the first decentralized application solution fully written in JavaScript, opening up the ecosystem to developers already familiar with JavaScript and Node.js who can immediately start developing decentralized applications.

Our goal with LISK is to create a complete plug-and-play system where developers can complete every step from design, development, publishing, and monetization on a single platform. Using the LISK ecosystem, developers can quickly deploy their JavaScript applications to hosting storage nodes, get listed in the Dapp Store, and gain immediate access to the execution nodes running LISK computing code. This is all supported by the borrower consensus function ensuring the integrity and security of the sidechains.

Above all, all these cloud features are paid for by users and LISK representatives via the built-in invoicing system (or by the network itself in the case of representatives) using LSK (the cryptocurrency) or BTC. It truly is a one-stop-shop for application development, providing a cutting-edge, lightweight, and forward-thinking solution.

Sidechains

Lisk plans to leverage sidechains and encourage developers to build dApps on them. Sidechains can store mainnet LSK tokens by locking the corresponding LSK tokens in the mainnet account of the sidechain owner through a special mainnet transaction. This means that, in the event of a flaw in the sidechain, all LSK tokens remain secure and can be retrieved by the sidechain owner. However, this also means any sidechain user is under the control of the sidechain owner.
Sidechains are fully customizable blockchains. Developers can customize all specifications, parameters, and transaction types of the sidechain. Sidechains can use the mainnets LSK tokens or issue their own custom tokens.
A key challenge for sidechains is finding node operators to keep them "active." According to Lisk, sidechain developers can specify their own consensus algorithm or choose to use Lisk’s consensus algorithm. In the latter case, they need to find their own delegates to keep the blockchain running. The 101 mainnet delegates do not have to serve as sidechain delegates.
Technical details regarding how Lisks sidechain technology works are unclear. Its not clear how secure sidechains are, how dApps run on sidechains, and how sidechains communicate with the main chain.

Use Cases

(1) Lisk Full Client
The LISK full client is the best solution for superusers, delegates, and developers. It is available for Windows and macOS. While it is the only way to become a delegate with this client. Lite client users can connect to the full client to access the network.
If allowed, they can also make raw API calls, if permitted by the full client owner. All client users download the blockchain from each other through peer-to-peer connections.

LISK users can use the Lite client to access their dApps and install them. The dApps API and the peer API are provided to developers. They can quickly and easily create dApps using JavaScript, nw.js2, or electron3.

(2) Lisk Lite Client

Regular users will primarily use the Lite client, a lightweight client to access their borrower accounts.

The Lite client is available for Windows and Mac OS. It does not require an installation process since it leverages modern web technologies. It does not act as a network node but can only connect to other nodes online via HTTP. This brings several advantages.

Users don’t need to download the blockchain, meaning the app is small. It doesn’t broadcast keys through the network; all data is signed on the local device. All types of transactions can be made.

If you want to run a delegate node, you can register your delegate account with the Lite client. However, it’s impossible to run a delegate, i.e., create new blocks. For that, you need the full client.

LISK users can use the Lite client to access their dApps and install them. The dApps API and the peer API are provided to developers.

They can create easy and quick JavaScript dApps using NW.js or Electron.

(3) LISK Mobile Wallet

The mobile client allows users to access their borrower accounts on-the-go. It is available for iOS and Android and selected in the Apple and Google Play app stores.

The backend infrastructure of the mobile client will mirror our desktop solution. The real changes come in adapting and customizing the user interface to provide a tailored experience for mobile devices. The app is designed to offer a familiar and easy-to-use mobile interface, much like the Bitcoin or banking apps you use daily. It will also allow you to launch your favorite dApps directly from the app itself. In the future, we plan to integrate specific device features, such as utilizing fingerprint or retina scan functionality, to enhance security for your account.