Dec 3, 2018 07:30 UTC
Dec 6, 2018 at 06:52 UTC
Ethereum Vs. Lisk – Everything You Should Know
Many years after the inception of the world’s first cryptocurrency in 2009, Bitcoin, the digital currency eventually garnered adoption by the masses. It was evident in the surge of Bitcoin’s prices in 2017. The niche Blockchain community always knew that the potential of the Blockchain Technology that underpins Bitcoin is far-reaching. The need to make the concept of Blockchain applicable to other use cases created the need for decentralized platforms like Lisk and Ethereum.
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Since the release of Ethereum in 2015, a variety of other platforms for decentralized applications have also come into the market. Lisk is one of them. Presently, in terms of market capitalization, LSK is the 33rd largest digital currency in the crypto markets. Ethereum is far ahead in the race being the 3rd largest digital currency. Many people have started to wonder if Ethereum is becoming more popular than Bitcoin. Ethereum and Lisk both aim to solve the same problem, but they have different approaches towards it.
Understanding Lisk and Ethereum platforms
Lisk can be described as a Blockchain-based application platform which facilitates the development, management and distribution of decentralized applications. It is achieved by developers through the deployment of their sidechain linked to the Lisk mainchain.
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Ethereum is a Blockchain application platform which facilitates the development of Smart Contracts. A Smart Contract can be defined as a script that is able to execute tasks automatically when a set number of conditions are met. To understand Smart Contracts in depth, do read out article Ethereum Smart Contracts Use Cases.
As it was the first-ever platform for dapps, Ethereum has grown to become the most suitable choice for the development of new tokens using the ERC-20 token standard. Ethereum is built behind the philosophy that decentralized application development has more many use cases than cryptocurrencies.
Lisk Vs. Ethereum: The differences
To begin with, Ethereum and Lisk differ in their consensus model. While Ethereum works with the Proof of Work consensus algorithm, Lisk, on the other hand, works with the Proof of Stake model. Lisk’s Block time is faster than Ethereum’s by 5 seconds.
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The concept of sidechain on Lisk ensures that congestion on a dapp does not adversely impact the Lisk network. Also, in Lisk, the developer determines the costs per dapp usage, while in Ethereum it is determined by the miners.
A significant advantage that Ethereum has over the Lisk network is that Blockchain of Ethereum is already functional. To this day, more than 1500 dapps work on the Ethereum Network. Lisk’s Blockchain, on the other hand, is under development.
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