What is Cryptocurrency Lisk? Introduction to its Features
One of the few cryptocurrencies that can be listed on Japanese exchanges is Lisk. Lisk has many aspects not so well known, so let’s take a look at it.
What is Lisk
The Lisk platform uses the key currency LSK. LSK is ranked 36th in total market capitalization on Coinmarketcap as of January 15th, 2019. (Provided by: coinmaketcap.com)
For the current price of LSK, please see below:
Features of Lisk
The use of Side chains
Lisk is a blockchain platform that can run distributed applications (DApps). What’s important in DApps are their performance. Lisk adopts a side chain as a means of securing performance. In order to understand the importance of the side chains, we will look at the problem with Ethereum which has no side chains. On Ethereum, a game that trains and buys little kittens called CryptoKitties became very popular. When kittens are bought, sold, or even born, a transaction is recorded on the Ethereum blockchain. Because Ethereum has slow transaction speeds, when CryptoKitties became very popular with an active user base, it resulted in a blockage of the whole Ethereum network due to the overflow of transactions.
With Lisk you can make side chains for each DApp so that one DApp like CryptoKitties will not affect the blockchain’s overall performance. From the viewpoint of users, performance of individual DApps will be improved with user experience.
Adopt DPoS for consensus algorithm
Lisk has adopted Designated Prove of Stake (DPoS) for its consensus algorithm. In the case of Lisk, a mechanism is adopted in which the holder of LSK elects 101 approval nodes by voting. It’s as if deciding approval nodes indirectly in a democracy so to speak. The voting weight is also determined by the amount of voter’s LSK held. By adopting DPoS, transactions can also be sped up. On the other hand, while the voting system approving nodes is concentrated in a small number, there are also critical opinions on this point that Lisk is centralized.
LSK is recognized by exchanges in Japan
There are over 2,000 cryptocurrencies in the world, but in Japan exchanges only handle about 20 of them. LSK is on a few of these exchanges where a user can buy and sell directly using Japanese Yen. The Japanese exchanges where a user can buy and sell LSK are Coin Check and BitFlyer, which began trading back on January 15th, 2018.