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What is Lisk - Simple Explanation for Beginners

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Tue, 15/05/2018 - 13:12
What is Lisk - Simple Explanation for Beginners
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Introduction to Lisk

Verify all transactions. It is safe to say that the emergence of new types of crypto-conversions (and there are already more than a thousand types) has become a model of a new economy that will become more equitable and balanced.

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How does the crypto currency work? Transaction at the time of its commission is registered in the database. At the same time the owner’s address and the currency belonging to the individual are determined. This procedure is very similar to the banking. Similarly, we make a money transfer from one's account to another. The amount of money is deducted from our account and added to the next. All transactions take place in the framework of accounts. Money in this case is just information; there is no actual exchange of funds.

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The essence of the work of any cryptocurrency is the registration of a large data profile. This is similar to a large journal or library with information, where the distribution of funds is coming to the right addresses. The difference between real money and blockchain is that it's only digital and it means you cannot convert it into real banknotes and coins.

Cryptoconversion gives the owner two keys: open and closed. They are reflected in the form of lines from a random set of characters (letters and numbers). Your public email address can work as a private key or password. However, it is important to do not provide this key to anyone. The key data record must be stored in a safe place without access to outsiders. It is best to write down the key on paper or take a picture because no one can hack it.

It is not recommended to store data about passwords and keys in documents on the hard disk of the computer or in the Web. The problem is that there is no way to recover your key in case of loss. There is no server to which you can send a recovery request. Cryptocurrency can disappear without a refund, the control is not returned. Also, if another user receives your key, he will become the full owner of your assets.

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Lisk Basics

The main difference between digital money and traditional ones is in the decentralization of all conversions. When we make a transaction, the confirmation of our actions comes from network computers. There is no bank or PayPal system that can track and control the transfer of funds. The network of computers confirms the legality of the transfer through Peer-to-Peer communication. This is both a very attractive and destructive side of the blockchain. Thus a new form of power appears. Here, money is controlled by users, not by corporations or banks. Cryptoconversion protects all transactions and guarantees confidentiality. Your identity is encrypted and hidden, all procedures are completely safe, if you have not lost the key.

what is lisk

Cryptocurrencies are used as a kind of fiat currency, which can be spent on goods and services. Previously, the number of firms accepting such payments was very small. Now there is a rapid growth of companies which accepts crypto-currencies as payment. This method of payment has become popular. The most common type of currency was bitcoin. This is the first cryptocurrency in the world and the most common today. But some companies have already started accepting and developing new varieties of crypto conversions.

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