LSK is the utility token of Lisk, a blockchain platform that enables developers to produce and distribute decentralized apps, or dapps. The apps are written in Javascript and Typescript, both of which are commonly used in general web development. Through Lisk, developers can create custom dapps and cryptocurrencies by using sidechains.
LSK Price
LSK has a total supply of 144.8 million tokens, and its maximum supply is unknown.
The tokens are mined through a process known as “forging,” which uses the proof-of-storage algorithm. It is not accessible to all users, as there are only 101 “trusted forgers” on the network at any time. New LSK tokens are created every time a new block is generated on the network. Forging rewards go down every 3 million blocks by 1 LSK, and they will remain at 1 LSK per block after five years.
The LSK token has seen wild price swings since the token started trading in May 2018. The token reached its all-time high of $34.92 in January 2018. Its all-time low came in March 2017, when the LSK price hit $0.101672.
LSK had a massive run-up from May 2017 to mid-February 2018, with prices ranging from $0.5 to $34.92. By late 2018, the token price’s fell to $1.5 and lower and resumed sideways momentum until February 2021. A brief spike in May 2021 saw its price return to $8.96, although it soon dropped to below $2 by late June 2021. Since then, LSK has remained range-bound between $2 and $9.
How Does Lisk Work?
Lisk, which operates on a native blockchain, is accessible through Lisk Core software. The software enforces protocol rules, keeps network participants in sync and ensures smooth operations.
Developers can use the Lisk software development kit (SDK) to build decentralized applications compatible with Lisk Core. The SDK consists of the Framework (interaction between dapp modules), Elements (coding libraries) and Commander (a user-oriented tool for interacting with the blockchain) components.
Lisk uses the delegated proof-of-stake algorithm to secure its blockchain. The algorithm also uses real-time voting to help determine who can create the next network block. Users can present their LSK tokens to vote for any of the 101 delegates, and the delegates in turn can share their block reward with users who vote for them.
Additionally, Lisk provides sidechain architecture for greater scalability. Every sidechain is linked to the main blockchain to make dapps accessible on the main Lisk network. The dapps can also be coded in JavaScript or TypeScript, ensuring developers don’t need to learn a new coding language.
Key Events & Management
German entrepreneurs Max Kordek and Oliver Beddows founded Lisk in January 2016, and as of November 2021, they were both still working on the project. The company raised $5.8 million during its March 2018 initial coin offering that included an investment from IOSG Ventures.
The blockchain underwent a hard fork in August 2021, and there were soft forks in June and August 2019.
Lisk has not explored any layer 2 systems yet, although its road map indicates compatibility with other blockchains will be a priority in a future release.
