Note: This article was originally written for LiskNation.com prior to my decision to discontinue the site in favor of blogging solely on Steemit!
Lisk isn’t a crypto currency so much as it is a platform. That platform exists to allow the creation and distribution of blockchain applications. This is the core of the Lisk business model and is key to success over the long term. In order for Lisk to succeed, they will need high quality, top tier blockchain applications available as soon as the sidechain technology is complete.The key however, isn’t simply to release minimally useful blockchain applications, but rather to release pivotal applications that will build the Lisk ecosystem and will allow the full vision of Blockchains-as-a-Service to be realized. These are the 5 blockchain applications that we believe are the key to making that a reality and will take Lisk to the next phase of it’s evolution.
1. Decentralized, Trust-less Exchange
Exchanges are a necessary evil when it comes to the crypto space, but up until now, they have all been built as for-profit businesses that have shown mass corruption, susceptibility to hacking, and insider threats. Companies like Shapeshift have started to build new models that are intriguing, but we need to take it to the next level.Lisk needs a fully trust-less, decentralized exchange, that facilitates direct, 1 to 1 exchange between users without any intermediary, run on it’s own DPoS sidechain. It needs to be simple, have an intuitive interface, and fees taken off the top of transactions (if necessary) would be used to compensate delegates. We have a lot of ideas on how this could be accomplished and will be posting individual ideas and thoughts on each of these 5 blockchain applications as we continue to build out Lisk Nation.The keys to making this succeed are eliminating the middle-men, eliminating the hacking issues, and eliminating the ability for insiders to compromise the system.
2. Token Issuance Platform
This feature has often been referred to as “Custom Tokens” in the Lisk community as a holdover from the Crypti days (where it was originally an intended built-in function of the main blockchain). As far as I know, this has been offloaded to conceptually being more of a sidechain than a built-in function, which is probably for the better. The functionality would be simple and would allow companies, more likely Decentralized Autonomous Corporations or Organizations (DACs/DAOs) release tokens without being required to run a blockchain from scratch.This blockchain application would be used to create “dumb-coins” that would not be individually mined or forged, but would just exist on the blockchain and be transferable. It would have to be able to scale to encompass thousands of possible tokens as more companies move to token based equity sales and tracking, but it would allow for a blockchain based startup focused stock market that would allow companies to create equity tokens to use in crowd-sales to raise funding.This blockchain application would need to be directly integrated with the above mentioned trust-less exchange to allow immediate and seamless trading of all new coins created through the Lisk token issuance platform and would help facilitate business creation all within the Lisk ecosystem.
3. Decentralized Crowd-funding Platform
We already have a token issuance platform and a way to trade the newly created tokens, what we need now is a platform to allow for a more robust crowd-funding experience directly in the Lisk ecosystem. This blockchain application needs to be as well developed, feature rich, and aesthetically pleasing as something like Kickstarter, Indiegogo, or Patreon, but with some additional design elements that will make it more appealing to the crypto space and Lisk developers in particular.First and foremost, the biggest difference between our crowd-funding platform, and the others mentioned, such as Kickstarter, will be the prime focus on equity based crowd-funding, not product focused crowd-funding. The platform should be built to directly allow the issuance of the tokens generated in the previously mentioned token issuance platform to make it as easy as possible for Lisk developers to start and fund a new company or idea.The other key differences I won’t get into just yet as they are part of a project design currently being fleshed out for a possible proposal to the Lisk community for funding (by me). They are focused on gearing the crowd-funding platform to better function within the volatile and sometimes shady world of crypto, and would also serve to make it 100% regulation compliant, making it a safe, legal alternative to current methods.
4. Decentralized Storage Solution
While Max and the team have discussed the possible utilization of IPFS as the storage solution for Lisk developers, he has often stated he would much rather focus on a custom, Lisk based solution. This is a great idea and would be a core element of the overall Lisk ecosystem. A blockchain application focused on storage would need to be able to decentralize the data, encrypt it at all levels, and ensure that it was always available and always secure. It would be the default choice in the Lisk Application Marketplace when uploading and listing a new application, and it would need to be cheaper than traditional cloud storage methods in order to be successful.One major key to making this blockchain application a success and making it in a way that will help the overall Lisk ecosystem grow, would be to utilize LSK as the main method of payment within the application rather than a custom token. If the cloud storage and billing was all based around LSK payments, it would tie the Lisk ecosystem together in a measurable way, give more reasons to hold LSK and would create a much larger degree of network activity on the main blockchain, which would be a huge positive for the future of Lisk, the technology.
5. Delegate Marketplace
The delegate marketplace has long been a feature discussed by Max in interviews and presentations and will be a key component of Lisk. Whether it is developed by the official team or ends up being a prominent 3rd party application, having a LSK based delegate marketplace is key to the success of Lisk.The delegate marketplace would allow new developers to find and hire delegates for a number of purposes. Whether they are in need of delegates running Lisk Storage, Lisk Mainnet nodes, Ethereum nodes, or otherwise, it would allow them to utilize these nodes, in exchange for LSK, to interface with these additional blockchains in order to add greater functionality to their blockchain applications. Built in billing interfaces for the developer and the delegate will make the process seamless and intuitive for everyone involved.The delegate marketplace should also have the option, much like 99 designs or typical freelance sites, for developers to post a proposal when looking for delegates, and allow them to pay a small fee to feature their proposal or new creation for delegates to help them fill out the required number of nodes to get their network online and running. It would also have a searchable database for delegates looking for new opportunities or hidden gems to support early.
Honorable Mentions
While we believe the above 5 blockchain applications will be critical to the success of the Lisk ecosystem, there were a few other ideas that we thought should at least get an honorable mention. Here they are in no particular order:
1. Lisk Gaming Platform – Let’s face it, gaming is always popular and could bring in a large group of new users into the Lisk ecosystem. Multiple sidechains could be created around various gaming companies and custom tokens, or one major platform could be created with a custom token that services multiple games and ventures. Either way, we all know gaming is hot and with a couple viral hits, it could really push Lisk forward when it comes to adoption.
2.Internet-of-Things – While IoT is a constant buzzword being thrown around, it really hasn’t seen the innovation or push that I think it should. Until I can talk to my microwave, lights, and television like I do Alexa, straight out of the box, we have a ways to go. I think the largest problem here is figuring out the micro-transaction based monetization model that will make these types of ventures profitable. Until then, using blockchain for IoT is sort of a pipe dream that has yet to be fully realized.
The Future of Lisk is Applications
The key to Lisk being a success is in building an ecosystem that supports blockchain applications. To do that, we must first support blockchain application developers by building them a system that is fluid, seamless, easy to use, and allows the rapid creation and deployment of the tools they need to build the distributed and decentralized applications of the future.By building a Token Issuance Platform, a Decentralized Exchange for the Tokens, a Crowd-funding Platform for utilizing them to raise capital, a storage solution for distributing the application, and a delegate marketplace to find others to run it, we bottle up the entire business development and launch process into a Lisk sidechain based funnel that can make it the primary platform of choice for anyone looking to build a blockchain application now. These 5 key components can create the pillars that keep Lisk strong for the foreseeable future and really set it apart from the competition.
What are your thoughts? Sound off in the comments below and let me know what you think is needed to build the foundation for the Lisk ecosystem! Are you building one of the above solutions? Let me know so I can interview you!