A year in the life of Lisk (LSK)
The cryptocurrency Lisk only arrived on the scene in 2016 – not a late arrival by any means given that the market has almost doubled in new currencies since – but how has it fared recently and what differentiates it from rivals?
Lisk’s selling point is the fact that on launch it sold itself as the “first modular cryptocurrency utilising sidechains”. What this means is that the LSK coin uses ‘modules’ that serve as the basis of its construction. In short, the Lisk system allows anyone to use its ‘designing blocks’ to construct their own decentralised apps .
The general assumption is that Lisk and Ethereum are similar in nature in that the primary goal of both platforms is to help developers create and facilitate decentralised apps on the blockchain.
The programs differ however in where applications are stored, and the language in which the application is written. On Lisk, developers creating applications can store them in “side chains” not located on the main blockchain. Ethereum does not use sidechains.
The argument goes that Lisk offers good scalability and customisation, however there are concerns that there are no easy fixes if there are code issues. So how have the two ‘similar’ cryptos fared over the past year?
Lisk’s price peak
Lisk’s price peaked in late February 2018 when it hit $32.62 before falling sharply in March and April – hitting a low point of $7.52 in early April before staging a temporary but unspectacular recovery in May when it rose to $14.74. Since then the Lisk price has largely followed a downward trajectory – going below $7 in early June.
Ethereum hit its high point of the year in mid-January when it reached $1,380 but then the price began slipping, hitting a low of $369.97 in early April. Like Lisk, Ethereum has covered a little since then but not even close to its January high (tending to stick between $500 and $650 range).
Lisk’s market cap is currently $720.79m, by comparison Ethereum has a market cap of $49.91bn.
Last June, Lisk announced its first-ever major release, Lisk Nano 1.0. The release introduced a number of new features and performance enhancements for users.
According to founder Max Kordek, Lisk Nano 1.0 took the crypto community a step closer to the innovative, safe, and seamless blockchain application platform outlined by Lisk since day one. He claimed it was a “key milestone.”
The increased profile of the currency was something else Kordek pointed to at the time. “Our community is also essential to our growth and their support will be the only way to achieve our goals over the coming years,” he said.
Lisk, like many of the top altcoins benefited from huge token price gains in a short time only to then experience large volatility later in early-mid 2018.
In in a fast moving and highly-populated crypto market, participants are constantly looking at improving their offering. For Lisk, this meant a rebrand in February 2018.
The most notable element of the rebrand was not new logo designs/dashboards etc but the arrival of Lisk Hub, the browser-based wallet service. The Lisk visual identity for Lisk Hub is the first step of creating an account.
A proprietary algorithm combines the graphic elements into a unique wallet avatar. Following on from that, Lisk Hub reveals the 12-word pass phrase, which is not kept anywhere by a third party, and needs to be written down and protected. This phrase is used to generate the private key.
The general response following the launch of Lisk Hub was positive, though there were concerns in some quarters at what was perceived as a relatively high transaction fee.
In June 2018, an improved version Lisk Hub was announced which included a new settings page. Lisk developers felt they needed to limit complexity and provide reasonable defaults of Lisk Hub features to lower the entry barrier for users who are new to blockchain.
The Lisk price is forecasted to reach $27.24 by the beginning of December 2018 with the price prediction for the end of that month $28.09. By summer 2019 it is expected to be around $45.
Some forecasters suggest that within five-years it could rise to around $106.