With this development, delegates are now able to generate/forge blocks and be rewarded for it, a process similar to bitcoin mining, while ensuring the decentralization of the Lisk network for the first time. Prior to this, the network was tied to a managed system where the nodes of 101 delegates were operated and controlled by the Lisk team. Now, all delegates are under the purview of 101 different community members; a decentralized democracy model that allows Lisk to boost its case for being a world-leading provider of blockchain applications.
The stabilization of the mainchain will result in massive advancements within the Lisk ecosystem. Firstly, the Lisk blockchain is now truly decentralized and trustless, allowing delegates to control their own nodes without supervision or governance by the Lisk team. Secondly, the activation of forging rewards allows LSK holders to either choose to keep their income or reinvest it back to the Lisk network with the aim of financing proposed community projects.
These forging reward incentives flowing into a growing community encourages friendly competition; an environment where users will work harder and faster to secure votes in the hopes of gaining entry into the list of the top 101 delegates.
Says Lisk CEO Max Kordek: “This achievement bolsters Lisk in a big way, and parallels most of the very reasons blockchain technology exists; to allow greater financial freedom, to reward network contributors, to heighten the peer to peer experience and to do away with a central point of authority. We’ve created opportunities for the strongest Lisk supporters to enter the top 101, earn LSK forging rewards, and give back to the system through their own proposals. To be a part of a decentralized community is appealing in its own right but building a decentralized system with active delegates is something entirely different.”
Lisk at its core is a decentralized platform allows for the deployment, distribution, and monetization of sidechains onto the Lisk blockchain. The Lisk network is operated using a highly efficient Delegated-Proof-of-Stake (DPoS) consensus model, which is secured by democratically elected delegates. The cryptocurrency underpinning the Lisk platform is called LSK.
The company was founded by Kordek and Oliver Beddows in 2016, fueled by a crowdsale that attracted over 14,000 BTC in funding (which is now equivalent to $10 million.) This ICO made history by becoming the third most successful cryptocurrency crowdfund to date, the largest in Germany, and one of the top 25 crowdfunds ever.
Currently valued at over $14 million, LSK, the cryptocurrency underpinning the platform, is situated prominently as one of the world’s most valuable digital currencies.
Lisk, headquartered at the Sony Centre in the iconic German business district, has attracted developers from around the world. Also, prominent advisors like Charles Hoskinson and Steven Nerayoff have contributed to foster a growing ecosystem around blockchain applications and services.
Lisk’s latest development follows an ambitious series of improvements launched last month including a Delegate Campaign, Proposal Contest and Community Fund. These three events paved the way for the Lisk community to grow their already successful network by empowering Lisk holders to make community-led decisions.
“The Lisk community is essential to our growth and their support will be the only way to achieve our goals in the next few years. By giving them a platform to have a voice, the community can administer and deploy the tools they need for sidechain development by their own initiative. We are thankful that our community showcases demonstrated passion, support and understanding of the blockchain technology and all of its benefits,” Kordek added.
“We want to be as open and transparent as possible and unveiling our future commitments was a special moment for us. We believe the resulting outcome of our efforts will supercharge the democratic and decentralized nature of our blockchain while providing a foundation for long-term sustainability and success.”