Lisk (LSK) is a blockchain-based platform that enables the development of blockchain-based applications using JavaScript. Unlike digging other cryptocurrencies, Lisk uses the Delegated Proof of Stake (DPoS) system as its consensus protocol. In this article, we’ll discuss how to get started digging Lisk, and you’ll learn about hardware, software and other factors important in the process.
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Lisk and Delegated Proof of Stake (DPoS)
Lisk, unlike other cryptocurrencies, does not rely on a digging process in the traditional sense. It uses the Delegated Proof of Stake (DPoS) system, which is an innovative alternative to Proof of Work (PoW) and Proof of Stake (PoS).
DPoS relies on the Lisk community voting for selected delegates who are responsible for maintaining the network and creating new blocks. There are 101 active delegates whose job is to maintain the network and create new blocks. In return, delegates receive rewards in LSK.
How to get Lisk?
To get started, you need to set up a Lisk cryptocurrency wallet to store and manage your LSK. The Lisk wallet is available on various platforms, such as Windows, macOS, Linux, iOS and Android. Download and install the appropriate wallet for your operating system from the official Lisk website.
Purchase Lisk
Once you have set up a wallet, you will need to purchase Lisk to participate in the DPoS process. You can do this on various cryptocurrency exchanges, such as Binance, Kraken or Zonda. Then transfer the purchased LSK to your wallet.
Voting for delegates
In the DPoS system, you need to vote for delegates, who will be responsible for creating blocks. Each LSK holder can vote for up to 101 delegates. It is worth noting that voting is paid – one vote costs 1 LSK, but this value is returned when the vote is changed.
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Receiving rewards
If the delegates you voted for are elected to the active set of 101 delegates, you will receive a portion of the rewards in the form of LSKs for their work. These rewards are usually distributed in proportion to the number of LSKs held by voting delegates. Check the delegate ranking regularly and make changes to your vote to increase your chances of receiving rewards.
Keeping active
It’s important to regularly monitor your LSK balance, delegate list and ranking so that you can respond appropriately to changes in the network. Sometimes you may need to change your votes to optimize the rewards you receive.
How to make money on Lisk? Masternodes and Forging
Although you can’t traditionally mine LSK, there are several other ways to engage with the Lisk network and earn on your investments.
- Masternodes: These nodes, are the computers responsible for processing transactions and maintaining the Lisk network. Those who maintain masternodes must hold a certain amount of LSK as a deposit, which serves as collateral. In return, masternode owners receive rewards for maintaining the network.
- Forging: Forging involves the creation of new blocks in the Lisk network by delegates. In the process, delegates validate and add transactions to blocks, which are then added to the blockchain. In return for this service, delegates receive rewards in the form of LSKs.
Summary
The Lisk “digging” process does not rely on traditional digging, as is the case with PoW-based cryptocurrencies. Instead, it uses a unique Delegated Proof of Stake protocol, in which participants vote on delegates to manage the network and create blocks. Receiving rewards in the Lisk system is tied to the amount of LSK held and commitment to voting for delegates. This innovative consensus approach enables efficient, flexible and sustainable management of the Lisk network.
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