Lisk VS Ethereum

A simple guide to understand the fundamental difference

With the success of Bitcoin (the first cryptocurrency) became quite obvious from the market adoption it received that there are more potentials and possibilities in blockchain and decentralization. The desire to make the concept applicable for other functions created the need for a platform (for decentralized application development).

Ethereum was the first platform created to meet this need. But since Ethereum, a number of other platforms have been created for decentralized applications. Lisk is one of the other platforms and it is currently the 24th largest cryptocurrency by market capitalization. However, Ethereum is far ahead in market capitalization and currently the 2nd largest. Both Lisk and Ethereum solve the same problem but they have different approaches to it.

Lisk is a blockchain application platform that enables developers to create, distribute and manage decentralized blockchain applications by deploying their own sidechain linked to the Lisk mainchain.

Basically, the approach of Lisk is to solve the scalability problems that many cryptocurrencies experience and give more flexibility to developers. Lisk offers a Software Development Kit (SDK) which will enable millions of developers around the world to create their own decentralized applications (dapps) on the Lisk network. Lisk takes the ease of creating dapps very seriously and therefore makes it possible to build and deploy blockchain applications in JavaScript. This is because JavaScript is already well known by developers around the world. It makes it easier for developers than having to learn a new programming language.

The philosophy of Lisk is that developers would prefer an easier and more flexible platform to create dapps, rather than go all the way to learn a new programming language. Also, that developers would prefer not to be stuck on a network that can be affected by the misfortune of other dapps on the network.

Ethereum, on the other hand, is a blockchain application platform built in a way that enables developers to create smart contracts.

This smart contract feature is a script designed to automatically execute tasks when certain set conditions are met. Being the first platform created for dapps, it has grown to be the number one choice of creating new tokens using its ERC-20 token standard. The philosophy of Ethereum is that a platform for decentralized application development (and smart contract feature) will be a greater use case in the blockchain world than the financial transaction and currency use cases.

The differences between Lisk and Ethereum can be summarized thus:

Lisk VS Ethereum

The basic difference between Ethereum and Lisk begins from the consensus model. While Ethereum is still stuck with Proof of Work and plans to transition to Proof of Stake, Lisk is working with Delegated Proof of Stake. Lisk has a block time that is about 5 seconds faster than Ethereum. An important difference and advantage to Lisk is the ability to program in JavaScript on Lisk. Meanwhile, Ethereum developers have to learn Solidity. Also, the sidechain concept of Lisk creates the idea (in theory) that congestion on a particular dapp will not affect the entire Lisk network. And then, the developer determines the costs per dapp usage in Lisk unlike in Ethereum where it is defined by miners. A considerable advantage Ethereum has over Lisk is that the Ethereum blockchain is already live and functional with over 1,500 dapps on it. Meanwhile, Lisk is still under development.

Both Lisk and Ethereum show great potential to become iconic blockchain platforms. However, only time (and work put in by the different teams) will tell where they both stand in a few years.

Lisk VS Ethereum was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.