How to Buy Lisk Online in 2022
Lisk is a blockchain platform aimed at easing the creation of decentralized applications(dApps). Lisk, an open-source project, seeks to make it possible for everyone to enjoy the benefits of blockchain technology by facilitating the ease of creation of dApps.
This article will guide you to understand Lisk and what to watch out for in 2021.
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What Is Lisk (LSK)?
Lisk is a blockchain application platform powered by LSK tokens that enables the production and deployment of decentralized applications.
Lisk also allows developers to create applications on sidechains connected to a Lisk network using their tokens. Sidechains were designed like auxiliary blockchain that integrates into the Lisk network and provides autonomy to projects developed on the Lisk mainchain.
The platform runs on a shared network based on a Delegated-Proof-of-Stake (DPoS). Unlike the proof of work protocol used by Bitcoin, DPoS utilizes a consensus algorithm.
Lisk boasts of being one of the earliest blockchains to facilitate dApp development. Oliver Beddows and Max Kordek developed this application development platform in early 2016. As a result, 100 million LSK were initially released into the Lisk blockchain.
Currently, the market capitalization for Lisk stands at around $615 million. There are about 144 million LSK coins in total supply today; however, there are only 128 Million coins in actual circulation.
In its initial coin offering, 100 million LSK tokens were created and shared among founders, development team, and supporters, in the process raising about 14,000 Bitcoins with an approximate value of $5.7 million.
How Does Lisk (LSK) Work?
Lisk aims to lower the entry barrier into the production of applications in the blockchain ecosystem.
Lisk comes with a set of tools in the software development kit (SDK) that facilitates the creation and publishing of custom dApps. In other instances, developers have to hassle to come up with a blockchain from the ground up. There are four standout features in the SDK:
Sidechain: Used by developers to create an offshoot (auxiliary blockchain) from Lisk that makes it easier to develop and publish apps.
Consensus algorithm: The use of DPoS, verifies transactions on the network.
Frontend: This represents the user interface and how users interact and transact on the Lisk blockchain.
Backend: This end relies on the sidechain for customization to meet the application specifications.
Lisk has taken full advantage of the delegated proof of stake(DPoS), a consensus mechanism. This same mechanism is also used for the sidechains.
DPoS derives its advantage over proof of work used by cryptos like bitcoin because it avoids costly hardware. It utilizes delegates who validate transactions. Owners of the LSK token are given the right to vote for 101 delegates who control the master node on the shared network. Governance rules dictate that when a delegate operates inappropriately, they lose their delegate right, and the network resumes operations as envisaged.
How to Buy Lisk (LSK)
Lisk is available on some popular cryptocurrency exchanges. Currently, you cannot use fiat currency to purchase Lisk. Instead, you will need to have some bitcoin to exchange for Lisk. Some exchanges allow transfer from other coins with pairing options such as LSK/BTC, LSK/ETH, and LSK/Altcoin.
Steps to Buy Lisk (LSK) with Bitcoin
Use these simple steps to buy LSK using BTC.
Step 1: Open an account
Step 2: Acquire LSK
Step 3: Transfer your LSK
Before purchasing Lisk, you will have to download the Lisk Nano wallet, available on the Lisk website. Some of the exchanges you can buy Lisk include:
Congratulations, you've just bought your first Lisk!
How to Trade Lisk (LSK)
Users usually trade their LSK to BTC or ETH or vice versa. Follow these simple steps to trade LSK.