Lisk Transitions to Ethereum as Layer 2 Solution, Embracing Industry Standards

25 December 2023

Lisk, a Layer 1 blockchain, is set to migrate to the Ethereum ecosystem as a Layer 2 solution, aiming to enhance accessibility and scalability.

Lisk, a blockchain platform launched in 2016, is making a significant move by transitioning to the Ethereum ecosystem as a Layer 2 solution. This strategic shift is aimed at aligning with industry standards and accelerating Lisk’s mission of making blockchain technology more accessible. By leveraging Optimism’s OP Stack framework and Gelato’s rollup-as-a-service platform, Lisk aims to enhance its capabilities and focus on real-world assets and decentralized physical infrastructure networks.

The Rise and Fall of Lisk:

In 2017, during the peak of the cryptocurrency bull market, Lisk was among the top 20 cryptocurrencies by market capitalization. However, as the blockchain industry matured, Lisk’s popularity waned, leading to a decline in its market cap by 83%, from $919 million to $152 million. Recognizing the widespread adoption of the Ethereum Virtual Machine, Lisk sees an opportunity to regain momentum by migrating to become an Ethereum Layer 2 solution.

The Testnet Deployment and Mainnet Launch:

Lisk plans to deploy its Layer 2 network on the Ethereum ecosystem’s testnet in the first quarter of 2024, followed by a mainnet launch. This transition will enable developers to access significantly lower fees, up to 90% cheaper than the Ethereum mainnet. This cost reduction is expected to attract developers and users to leverage Lisk’s Layer 2 solution, further enhancing its adoption and scalability.

See also  The Year of Scandals: A Look Back at the 10 Biggest Celebrity Controversies of 2023

LSK Token Migration and Airdrop:

As part of the transition, Lisk will migrate its native LSK token to the Ethereum network. This migration aims to improve the token’s usability across various decentralized applications (dApps) and decentralized finance (DeFi) protocols within the Ethereum ecosystem. Lisk plans to continue its existing reward-sharing mechanisms for LSK, and the token will also be utilized for on-chain governance in an upcoming Lisk DAO. Additionally, Lisk intends to conduct an initial airdrop of LSK tokens to incentivize activity on the new Layer 2 chain.

Collaboration with Optimism and Gelato:

Lisk’s transition to the Ethereum ecosystem involves collaboration with Optimism and Gelato. By utilizing Optimism’s OP Stack, Lisk becomes the first Layer 1 blockchain to contribute to the development of the Optimism Superchain network of Layer 2 blockchains. This collaboration underscores the belief that Layer 2 solutions are crucial for scaling not only Ethereum but the entire blockchain industry. Gelato’s rollup-as-a-service platform enables Lisk to deploy the OP chain seamlessly, without the need for additional code. This partnership also allows Lisk to integrate infrastructure and web3 services from launch, such as block explorers, bridges, and oracles.

Conclusion:

Lisk’s transition to the Ethereum ecosystem as a Layer 2 solution signifies a strategic move towards aligning with industry standards and enhancing accessibility. By leveraging Optimism’s OP Stack and Gelato’s rollup-as-a-service platform, Lisk aims to provide developers and users with a more cost-effective and scalable blockchain solution. This transition also opens up new opportunities for Lisk to collaborate with the Ethereum community, access liquidity, and generate revenue from its Layer 2 blockchain. As Lisk prepares for its testnet deployment and mainnet launch, the blockchain industry eagerly awaits the impact of this migration and its potential to reshape the future of web3 scalability.

See Your Business Here!

Add Your Local Med Spa Business Listing Today!