In a strategic advancement for the Web3 landscape, Lisk, a Layer 2 Ethereum blockchain, has partnered with Rainbow Wallet to streamline digital asset management and improve user experience in decentralized applications (dApps).

Lisk and Rainbow Wallet Join Forces to Boost Web3 Adoption

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Lisk Joins KEY Difference Labs to Supercharge Global Web3 Startups at 
Token2049

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Lisk

lisk

Aldo founded his first Web3 start-up in 2019. He’s the kind of guy who won’t let anything stop him. When he gets enthusiastic about an innovative tech idea, he’ll dig and grind and hustle till he knows everything he needs to build that product. He also seems to have a nose for where to find the resources he needs to support his endeavors. His current project, the Web3 social media app is part of the Lisk Grant Program ( ). The Enevti Test net is live and has been 2023 and Aldo believes when it gets launched on the main net next year it will revolutionize NFTs. Enevti which was recently upgraded since January What is Enevti? Enevti is a decentralized social media NFT platform. We’re not talking collectibles that only a few can afford. On Enevti, users can create NFTs with added utility and reward or gift others. Aldo was inspired by influencer activity. His idea is to enable influencers to connect directly with their audience. These new NFTs can facilitate specific types of engagement, such as a direct chat, an exclusive download, or a physical gift. And that’s only a fraction of what’s possible. The entrepreneur received several awards from the Indonesian Government including the Ministry of Communication and Informatics and the Ministry of Tourism and Creative Economy. Enevti won the IdenTIK 2021 competition in the start-up category and was chosen to join AKI Expo 2022, as one of the most creative products. His company and development have repeatedly been featured in the local news, such as CNBC, , and . If the local tech community in Indonesia - a hub for Web3 development - is excited, then we have reason to expect something meaningful. Jakarta Post Be(in)Crypto Following the Crypto Calling Let’s start at the beginning. In 2009 , a teenage tech enthusiast from Indonesia, sensed that AI would be the next big thing in tech. He joined a government program that would enable him to build his first AI project. Being exposed to all the rapidly developing AI possibilities, he quickly moved forward. One of his more promising inventions was a smart city app. The only problem was, it required the participation of the public. Aldo Suhartono Putra While searching for an effective way to incentivize people, the builder discovered - you guessed it - cryptocurrency! At first, he was intrigued by the prospect of making a lot of money fast. But being a curious tech geek, he got even more excited about what’s behind digital currencies: blockchain technology. By 2017 Aldo had gained experience in coding and developing. Everyone was hyped about building the next version of Ethereum. Aldo recognized then what most others only understood a few years later - scalability and interoperability would become serious challenges. “What good is a blockchain in a bubble? That disagrees with the idea of decentralization, it should be customizable.” He put his faith in instead. Lisk Well, that was then. Lisk - because of the quality and everything around it Fast-forward to 2023. The market has changed and technology has progressed. And so has Aldo. What remained the same is his faith in Lisk. Building on the Lisk platform has solved the scalability issue by allowing the creation of side chains. “In general, the platform offers great tools and the documentation is amazing.” According to the entrepreneur, this is extremely helpful and unique to . The modular Javascript SDK is convenient to use and excellent documentation has made coding smoother and the whole development faster. Lisk’s Program Aldo says that you’ll get development help in every program, but what makes this one special is the quality of everything around it. Anyone who’s ventured into building an app or a start-up gets to a point when they realize creating a great product isn’t enough. You find yourself facing many questions no one told you about and no technical person can answer. The Challenges Beyond Building Marketing is a big obstacle. It involves positioning yourself in the market and knowing how to reach the right audience. Most start-ups have no idea where to even start. In Web3 it’s even more critical because users are still skeptical. Also, you need to learn about monetization and tokenomics. The Lisk Accelerator program covers all of this. Participants get support from an internal team of experts who also hook them up with external professionals in the relevant areas. What’s more, the team genuinely cares. “I really feel that they want me to succeed and they’ll do whatever it takes till I do.” Aldo then tells me of how his community contact taught him to set up an storage instead of the common centralized storage. When Enevti was ready for the test phase, Aldo faced another challenge. How could he add enough nodes to the chain to start testing his app? The team helped him invite people to join the test net. IPFS From Creators to Owners on Social Media Enevti turns NFTs into an interactive tool with which you can transfer value to others. The current technology is way too complex for the average user. But with Aldo’s efforts, we may finally see simpler, more accessible digital assets and asset management. Aldo envisions NFTs evolving into an engagement tool for everyone. “ made every user a creator - Enevti will allow every creator to own their creation and utilize it”. Instagram

How Enevti Drives NFT Evolution with Lisk

Cómo Enevti impulsa la evolución de NFT con Lisk

Comment Enevti pilote l'évolution NFT avec Lisk

Enevti किस प्रकार Lisk के साथ NFT विकास को संचालित करता है

Enevti が Lis で NFT の進化を推進する方法

Como a Enevti impulsiona a evolução do NFT com a Lisk

Cách Enevti thúc đẩy sự phát triển của NFT với Lisk

Enevti 如何使用 Lisk 推动 NFT 进化

Why Accelerators Are Vital for Web3 Startups Working on Complex Challenges in 2023 In 2023, Web3 startups face complex and evolving regulatory challenges that require specialized support, due to which accelerators have emerged as a vital component of this support system, providing startups with the necessary resources and support to bring their ideas to fruition. Further, according to a by Outlier Ventures, there has been a significant increase in the number of blockchain startups, with over 3,000 active startups in the ecosystem. The same report notes that the blockchain industry raised over $20 billion in funding in 2021, with significant growth in sectors such as decentralized finance (DeFi) and non-fungible tokens (NFTs). T report These programs offer funding, mentorship, networking, and marketing opportunities to startups committed to pursuing web3 implementations over a multi-year timeframe. Further, in a by the Global Accelerator Learning Initiative (GALI), startups that participated in accelerator programs reported a 63% increase in revenue compared to non-participating startups. survey Lisk Launches Accelerator Program for Startups Building Web3 Apps: A Game Changer for Web3 Innovation Recently, the open-source web3 platform Lisk launched an accelerator program to support startups building web3 solutions. This program addresses the lack of support for web3 implementation and provides funding, mentorship, networking, and marketing opportunities for startups committed to pursuing web3 implementations over a multi-year timeframe. With the Lisk Accelerator Program, startups can access the support they need to turn their ideas into reality, driving innovation within the web3 ecosystem. Lisk CEO Max Kordek said, "Web3 applications can disrupt many industries, from finance to healthcare to supply chain management. They can eliminate intermediaries and enable trustless interactions, reducing costs and increasing efficiency. We believe that entirely new business models can be created. The Lisk Accelerator is our way to find and support those." The major problem that startups face is the lack of support for web3 implementation. This is where Lisk’s accelerator program comes in, providing funding, mentorship, networking, and marketing opportunities for startups committed to pursuing web3 implementations over a multi-year timeframe. In my opinion, the Lisk Accelerator Program is a game-changer for web3 innovation, offering four funding stages: Bootstrap Grant, Builder Grant, Booster Grant, and Breakout Grant. These grants provide startups with the necessary funding to develop and turn their ideas into reality. The program will operate in two phases, with Phase 1 running from March 20 - June 30, 2023, and Phase 2 set to operate from September 1 - November 30, 2023. The initiative will disburse grant funding of up to 250,000 CHF ($270K) per project. Lisk’s Javascript SDK makes it easy for developers to create their own Lisk-compatible sidechains and web3 applications. Its accelerator program will incentivize the development of Lisk’s tech stack and support web3 innovation. About Lisk Lisk is an open-source web3 application platform designed for interoperability with sidechains. Its JavaScript SDK gives developers a straightforward path into launching their own Lisk-compatible blockchains, enabling them to build scalable web3 applications. Each application has its own blockchain, allowing for virtually infinite customization. Lisk is committed to promoting the growth of web3 innovation, and its accelerator program is a step towards realizing this goal. Don’t forget to like and share the story! Image credits: . DeepMind : Vested Interest Disclosure The author is an independent contributor publishing via our . Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYOR brand-as-author program

Lisk’s Accelerator Program a Game Changer for Web3 Innovation

El programa acelerador de Lisk cambia las reglas del juego para la innovación Web3

Le programme Accelerator de Lisk change la donne pour l'innovation Web3

लिस्क का एक्सीलरेटर प्रोग्राम वेब3 इनोवेशन के लिए गेम चेंजर है

Lisk のアクセラレータ プログラムは、Web3 イノベーションのゲーム チェンジャーです

O Programa Accelerator da Lisk é um divisor de águas para a inovação Web3

Chương trình tăng tốc của Lisk một công cụ thay đổi cuộc chơi cho đổi mới Web3

Lisk 的加速器计划改变了 Web3 创新的游戏规则

Do you want to learn more about blockchain? Would you like to network with other Web3 enthusiasts and learn more about the most important industry trends? Then the from September 12th to the 18th will be the perfect time/place to do so! Berlin Blockchain Week These events are taking place in multiple locations in Berlin. Berlin Blockchain Week is a decentralized community initiative with no owner. There are many different events and activities throughout the week, focusing on multiple topics from the industry. The goals are: Reduce noise from the market Focus on Web3 education Remain as cost-friendly as possible Create a welcoming and inclusive environment for blockchain enthusiasts The Lisk team will be attending events during the week, and is aiming to be one of the key contributors. Events will take place at the Lisk Center, as well as team members taking part in panel discussions throughout the city. Blockchain Day II The , held at the Lisk Center Berlin earlier this year, was a huge success. it was clear for the Lisk team to host the second edition during Blockchain Week. Lisk is now looking forward to hosting the second edition, which will focus on the topic of . Lisk has invited different organizations to participate and explain the topic from their perspective and landscape, as well as the Lisk Research team diving into the Lisk Interoperability initiatives. first Blockchain Day Blockchain Interoperability Already more than 130 Web3 developers and enthusiasts are confirmed to join the event on September 14th. We hope to . see you there Wednesday, September 14, 2022 18:00 - 21:00 CEST Date and time: Place: Lisk Center Berlin Köpenicker Str. 126 · Berlin, BE Address: The event is free, to attend please register on the meetup page. Supporting Builders from A-Z Another event the Lisk Center will be hosting during the week is Supporting Builders from A-Z with CV Labs on September 15th. The event is focused on helping developers understand the landscape of funding, from grant programs, to incubation programs, to later stage investments. The event will be a great opportunity for founders, developers, hackers, startups, or even investors to learn more about how we support the WEB 3 Ecosystem from A-Z, from deep technical experts to late-stage funding. Wednesday, September 15, 2022 18:00 - 21:00 CEST Date and time: Place: Lisk Center Berlin Köpenicker Str. 126 · Berlin, BE Address: The event is free, to attend please . register at the meetup page Hosting the Interoperability Panel at Blockchain in Use BerChain and Berlin Partner are hosting the Blockchain in Use Conference at Factory Görlitzer Park on September 15th. This year the conference will focus on use cases and blockchain key players within the following tracks: Finance Creative Industries Interoperability As an important player in the , Lisk has been invited to host the panel discussion at Blockchain in Use, with panelists from projects like Polkadot, Filechain & Ocean Protocol. Alessandro Ricottone, Head of Research at Lisk, will moderate the panel to shed light on vital questions that have risen about this topic: future of Interoperability What does interoperability within decentralized systems mean? Which industries will have a high demand for interoperability? What kind of new business cases can be imagined on the basis of interoperability? What are the regulatory and organizational challenges? Wednesday, September 15, 2022 14:45 – 20:00 CEST Date and time: Place: Factory Görlitzer Park Lohmühlenstraße 65 · Berlin, BE Address: The event is free, to attend please . register on the meetup page CV Summit in Zug Apart from Berlin, Lisk will be a Platinum Sponsor at the CV Summit in Zug Switzerland, which takes place the same days as the Blockchain Day & Supporting Builders from A-Z. The CV Summit is designed to facilitate high-level discourse and showcase the Swiss blockchain ecosystem as one of the leading blockchain innovation and investment landscapes in the world. This unique event series gathers investors, corporates, and high-profile individuals in one place. Lisk’s Head of Platform Development, Manu Nelamane Siddalingegowda will participate in the debate on the State of Web3 Tech Layers 0, 1 and 2 during a panel . The Head of Exchange Development, Naureen Mustafa, will be holding a keynote on “DeFi’s potential beyond speculation”. An Exciting Week Ahead We are truly excited for all of the events planned for Blockchain Week. We hope to grow awareness and presence of the Lisk project, as well as important Web3 concepts as a whole, in Berlin and worldwide. To view the full list of events and sign-up for those you wish to attend, please visit the official . Berlin Blockchain Week Events page

Lisk Events at Berlin Blockchain Week

Eventos de Lisk en la Semana Blockchain de Berlín

What is Lisk? Lisk is an open-source blockchain application platform that aims to improve Web3 accessibility for both users and developers. Lisk Vision & Goals Lisk has the vision to be the most accessible blockchain application platform in the world. Its aim is to provide people with all of the benefits of blockchain technology, Web3, and crypto. Lisk has 3 main goals to achieve this vision: Become the industry standard for JavaScript blockchain application development The most popular programming language in the world today is JavaScript, used by millions of developers. Most of these developers are however unfamiliar with blockchain. This obviously means they have never created a Web3 project. Lisk provides the tools to them to succeed in building their own blockchain in JavaScript and TypeScript. Onboard 100,000,000 users into crypto & Web3 Lisk also aims to bring Web3 access to everyday users. This is a ground-breaking new iteration of the internet, and everyone should have the necessary exposure to it. Make the Lisk Foundation sustainable The Lisk Foundation is responsible for allocating funds for multiple expenses. These include continued research, development and marketing for all of the Lisk products. Having a sustainable foundation allows these efforts to continue for the unforeseeable future. Lisk Products There are many pieces that make up the Lisk Platform. Here is a quick look at some of the products that Lisk currently has to offer. Lisk Core Lisk Core is the program that implements the entire Lisk Protocol. This is what every machine needs to set-up and run a node, which allows for participation in the network. Lisk SDK The Lisk SDK provides a simple and reliable software development kit for building blockchain applications that are compatible with the Lisk Protocol. It has been designed to be easily extended to meet the requirements of a variety of blockchain application use cases. It is also written entirely in JavaScript, which means no significant change of tools or mindset is required for most developers to get started. Lisk Service Lisk Service is an application that allows for interaction with various blockchain networks based on Lisk protocols. The main goal is to provide data to the UI clients, such as Lisk Mobile and Lisk Desktop. With Lisk Service, you can access live blockchain data, as well as information such as geolocation, network usage, and more. Lisk Wallets There are two official Lisk Wallets that you may download and use - Lisk Desktop and Lisk Mobile. Lisk Desktop Lisk Desktop is available for PC, Mac, and Linux systems. It offers a feature-rich experience, with the ability to send all types of LSK transactions, including transfers, voting, delegate registration, multi-signature address registration, and more. It also has the ability to monitor many network events that you may find on an explorer. These events include the latest transactions and blocks on the network, delegate productivity, top account holders, and more. If you are interested in utilizing a hardware wallet, Lisk Desktop has that covered as well. It is compatible with Ledger Nano S and Ledger Nano X devices. For more information on the Ledger implementation, read the . Ledger Hardware Wallet User Guide Lisk Mobile Lisk Mobile is available on iOS and Android devices. While it doesn’t have quite as many features as its counterpart, it still allows for the most essential functionality, such as making transfer transactions. Where Lisk Mobile really shines is with its convenience. Being a mobile application, you can use it anywhere on the go. It also has an added feature for biometric authentication, allowing you to log in without your 12-word passphrase. However, for security purposes, your passphrase will be needed in order to send any transactions. Delegated Proof of Stake Consensus Algorithm The Lisk network is secured with a Delegated Proof of Stake (DPoS) consensus algorithm. DPoS utilizes voting mechanisms to make it more democratic in nature when compared to other consensus mechanisms, such as Proof of Stake (PoS). This allows transactions to be processed and verified much quicker. For a detailed explanation of how votes are calculated on the Lisk network, see the official blog post. Lisk Voting Process There are 101 active delegates securing the Lisk Network by processing transactions and blocks. These active delegates are the top 101 of all Lisk delegates, sorted by their vote weight. Each active delegate has a turn forging a new block, earning 1 LSK token in the process, as well as transaction fees. Once all blocks in the round have been forged, the process starts all over again. Stand-by delegates, ones that are outside of the top 101 by vote weight, are also given an opportunity to forge blocks. In each block round, 2 delegates are selected to forge blocks. While this selection is random, delegates that have more vote weight have a greater chance of being selected. You can learn more about Lisk’s DPoS consensus by reading our blog post. Delegated Proof of Stake Consensus for LSK Token Apps Built on the Lisk Network While the official Lisk platform launch has not happened yet, you can still begin developing your own applications for the Lisk network. To get started, you may walk through a to help guide you through building applications with the Lisk SDK. In fact, many developers have already done so and are currently developing their own blockchain applications. number of tutorials - A decentralized marketplace for sustainably sourced products. - A Lisk-based NFT marketplace. - An educational platform. - A decentralized social media NFT platform. - An engine used to create, secure, and access the Faet Metaverse. - A platform to support Decentralized Autonomous Organizations (DAOs). - An identity and public key infrastructure. - Community-driven NFT creation platform. - An immersive VR world. Bazar Colecti doEdu Enevti Faet Kalipo Idntty RGB Topas City Most of these projects have earned funds through the . If you are interested in building your own blockchain project/app in JavaScript, be sure to check it out. Lisk Grant Program Lisk Community Experience with Lisk doesn't end with products and app building. There are various official channels for the users to engage with the Lisk network as a community. Lisk.chat (Discord) This is the main channel for all Lisk-related communication. If you are looking to engage directly with the community, as well as Lisk team members, this is the place to do it. It is also a great place for dev-related help or finding a team that could potentially collaborate on building applications. Telegram Another place to meet and speak with fellow community members. Community calls are hosted by Lisk HQ regularly to keep the community up to date with the latest Lisk-related news and announcements. This is also the best place to engage in community contests to win some LSK and other prizes. Twitter A great place to help stay up to date with all the latest news, straight from Lisk HQ. Reddit Another platform that is used for all Lisk announcements and content. It is also a means to engage in discussions with users who may be more familiar with other aspects of Web3 in general. CoinMarketCap Community Our latest addition is a community platform. As CoinMarketCap Community is relatively new, the content and strategy will evolve. However, the Lisk team is excited to be a trailblazer for this to see how it can benefit our users and the project as a whole. The Future of Lisk Lisk will eventually allow developers to deploy sidechains onto the Lisk network, making these blockchain applications scalable while staying connected to the wider . Lisk ecosystem In order to achieve this, the Lisk network will utilize general cross-chain messages. This will allow all blockchains within the Lisk ecosystem to communicate with one another. This is known as . interoperability For more details on the direction Lisk is moving towards, please see the . Lisk Roadmap

Meet Lisk

Conoce a Lisk

To showcase an insight into the future of Lisk and to celebrate this year’s biggest achievements, was born. It will consist of a hybrid event scheduled to be held on , 2021, and will focus on the wider audience of blockchain enthusiasts. AmpliFire December 2nd Behind AmpliFire This is an event designed to suit everyone. It is geared towards both technical and non-technical individuals, blockchain enthusiasts, entrepreneurs, investors, and basically anyone interested in the crypto and blockchain industry. AmpliFire is all about celebrating our competitive advantages within the blockchain world, together with showcasing why blockchain, and why Lisk is the way forward. It will also provide us with an incredible opportunity to unveil some of the key announcements and brand new partnerships we have now established, coupled with our extensive vision to amplify and grow Lisk further into the future. Finally, we could not be happier to host another in-person event in Berlin, to facilitate networking sessions, and other fun activities. AmpliFire, an event by Lisk, aims to show the world we are not inactive by any means. On the contrary, we are very much alive and on fire! The Venue Located in a historic and vibrant area of Berlin, is a multifunctional and modern venue that offers ample space for a wide variety of diverse event formats. From meetups to conferences, the overall concept represents and portrays much of what we aim to achieve with this event. Hence the inspiration for our event naming. Amplifier We cannot wait to see you there on December 2nd, 2021, so make sure to and secure your ticket while you can! register The Agenda 6:00pm - 7:00pm Open Doors 7:00pm - 7:15pm by Monica Tartau, Head of Marketing, and Miguel de Sousa, Community Manager Welcome to AmpliFire 7:15pm - 8:00pm by Max Kordek, CEO & Co-Founder The Case for Lisk 8:00pm - 8:10pm by Miguel de Sousa, Community Manager HackOnLisk2: DeFi & GameFi Prizes 8:10pm - 8:20pm by Max Kordek, CEO & Co-Founder Lisk in Retrospect 8:20pm - 8:40pm by Jan Hackfeld, Head of Research, Shusetsu Toda, Head of SDK Development, Manu Nelamane Head of Platform Development Research & Development - Lisk Platform Launch in 2022 Siddalingegowda, 8:40pm - 9:00pm by Monica Tartau, Head of Marketing Marketing - Let's Get Loud in 2022 9:00pm - 9:15pm by Max Kordek, CEO & Co-Founder The Ultimate Vision for Lisk 9:15pm onwards Networking The Speakers To discuss the overall strategy and merits of Lisk, coupled with revealing our ultimate vision, we will welcome on stage Lisk’s CEO and Co-Founder, Max Kordek. AmpliFire, as the name suggests, is all about expanding our efforts. To achieve this the event will focus heavily on the newly redesigned and improved marketing strategy to further increase Lisks global exposure into 2022 and beyond, , will also be on stage to highlight this. Monica Tartau, Head of Marketing Furthermore, AmpliFire will provide an opportunity for those already engaged with the project to get a brief, yet insightful update on the latest technological advancements that the Lisk Development and Research are currently working on, namely, an update on the platform launch, together with numerous other key announcements. Conclusion Unlike our other event formats, will heavily focus on our Marketing efforts moving forward and essentially consist of rapid-fire presentations from official contributors of the Lisk project. We are confident this event will be a perfect opportunity to finally reveal multiple exciting announcements that we have been holding on to, together with our brand new partners, and finally to disclose for the first time ever the new vision for Lisk. AmpliFire We hope you are just as excited as we are. Make sure to set a reminder to on and/or to register if you would like to be present at the Amplifier venue in Berlin, Germany. watch the event live December 2nd Join us on our journey to make Lisk louder.

Lisk Preparing for AmpliFire: A Hybrid Event for Blockchain Enthusiasts

We are proud to announce that on August, 21st 2021, at 2:00 pm CEST, the Lisk Mainnet v2 successfully completed the . This comprises the biggest protocol changes on the Lisk blockchain ever, and marks the beginning of a whole new era for the Lisk network as it eliminates all weaknesses of the Lisk Mainnet v2 related to fees, consensus algorithm and accounts, and also prepares and improves the Lisk blockchain for the upcoming interoperability release in many regards. migration to Lisk Mainnet v3 What does this mean for me? This section provides an overview of the new and updated features which are now available on the new Lisk Mainnet v3. 1. New Account System Did you know that with Lisk v3 you have an extremely secure new account address system, with built-in error detection for typos? No need for account initialization anymore! We give our community complete security. The old address and ID system is replaced and all existing accounts will be automatically migrated to the new system. This introduces a longer address which makes it much more unlikely to experience address collisions and ensures that it is resistant to preimage attacks. In addition, it also eliminates the need to initialize a new account, as was required in the old Mainnet v2, ensuring that every new account in the Lisk network is completely secure right from the start. The following credentials of your account have not changed: Your private key Your Public Key Your 12 word mnemonic passphrase Hence, you can still use your old passphrase to log in to Lisk Desktop as before. The following credentials of your account have changed: Your Lisk address The new address is created from the public key as described in the illustration shown below. Please note that we now append a checksum of the address at the end of the address, which provides support for detecting typos in the account addresses. Thanks to the checksum depicted in the above illustration, a user can mistype up to 4 characters in the address, and it is guaranteed that the application will detect it. It does not matter if the errors are introduced in the checksum part, and/or the part that represents the 160-bits address. All important information about the new address and ID system can be found in the blog post: . The new Lisk ID System 2. Dynamic Fee System Did you know that with Lisk v3 transactions are up to 98,64% cheaper? Instead of 0.1 LSK the new minimum fee is now only 0.00136 LSK. We give our community competitive fees. The new dynamic fee system replaces the static fees and makes sending transactions significantly cheaper. It also enables users to overwrite their transactions in the transaction pool (i.e. transactions which are not included in the block yet), by setting a higher fee and the same nonce as the transaction they wish to overwrite. The minimum fee of each transaction is always burned to secure the system against various game theoretic attack scenarios. More information about dynamic fees can be found in the following blog posts: and . Lisk's Dynamic Fee System Static vs Dynamic Fee System: A Comparison of Both 3. Revamped DPoS Consensus Algorithm Did you know that with Lisk v3 the DPoS consensus algorithm received an entire revamp? A fair network, new validators, and no more cartels. We give our community fair decentralization. The DPoS consensus algorithm has been completely redesigned to improve the decentralization and security of the validator selection algorithm. This includes a completely new voting mechanism, two additional randomly selected delegates per forging round, and a new punishing mechanism for malicious delegates. Please note that all previous votes for delegates have not been migrated to the new Lisk Mainnet v3, and every account needs to recast their votes for their favorite delegates. More information can be found in the following blog post: . Actions Required for the Upcoming Mainnet Migration A list of the most important features in the DPoS new consensus algorithm can be viewed in the illustration below: More information about the new DPoS can be found in the blog post: . 3 New DPoS LIPs: Changing the Voting System for Lisk 4. Total Immutability with Lisk BFT Did you know that with Lisk v3 you can send a transaction and be certain it never gets reverted again? This is the way forward for future cross-blockchain transactions on our blockchain application platform. We give our community total immutability. With sidechains and interoperability coming into the Lisk ecosystem in the next major release of Lisk Core v4, blockchain applications will be able to facilitate transactions across multiple blockchains. To achieve this, it is necessary to guarantee that a sent transaction can never be reverted again. That is precisely what our newly implemented Lisk BFT consensus algorithm is doing. A block will become final on average after 155 blocks or approximately 26 minutes after it was included in the blockchain. If you want to be sure a block is finalized, compare its block height and the finalized height of the blockchain (e.g. check the finalized height with or the community-maintained explorers and ). If the block height of the block is lower than the finalized height, it is 100% ensured that this block and all its contained transactions are final and cannot be reverted or changed again. Lisk Desktop Lisk Observer Lisk Scan All important information about the new Lisk BFT consensus can be found in the following blog posts: and . Introducing Byzantine Fault Tolerance Consensus for Lisk Exploring Pre-Votes and Pre-Commits 5. Significant Performance Improvements Did you know that with Lisk v3 over 1,000,000 transactions can be processed every day? That is a vast increase of 5 times more than with the previous version. We give our community greater scalability. The performance of Lisk Core has been improved in multiple regards. The main improvements are listed below: The blockchain data is now stored in a key-value store instead of a Postgres database. Therefore, the required blockchain size has diminished and is now around 10 times smaller. Smaller blockchain size: API query response time has improved significantly. Faster query response times: The time required to process a block has decreased on average by 3 times for empty blocks and over 33 times for blocks containing transactions. Faster block processing time: Byte based blocks allow the inclusion of many more transactions in a block. Increased maximum transactions per second (TPS): Further details about the performance improvements of Lisk Core v3 can be found in the blog post . Benchmarking Lisk Core v3.0.0 against Lisk Core v2.1.6 6. New Modular Architecture Besides the extensive protocol improvements, there have also been large improvements in the code base of the Lisk SDK, which is also utilized in version 3 of Lisk Core. The overall development experience has improved greatly by creating a completely modular architecture of the blockchain application, whereby all different components of the application can be changed, extended, or replaced by the developer. The Lisk Commander has become a powerful CLI tool, which greatly simplifies the creation of blockchain applications. For example, it is now possible to bootstrap a completely new blockchain application with one single command, or to generate skeletons for new modules, plugins, or assets for a blockchain application. For more information about the new architecture, and how to develop blockchain applications with the Lisk SDK, check out the . Lisk SDK documentation Lisk Mainnet Party Recap In order to celebrate the largest update to the Lisk Mainnet in its history as well as to showcase an overview of all the biggest protocol changes on the Lisk blockchain, and to provide our community with insights into the next steps for Lisk; we organized a Lisk Mainnet Party, a fun and dynamic exclusive online event livestreamed on and . YouTube Crowdcast The Lisk Mainnet Party was hosted on August 21st live from the stage in the Lisk Center Berlin, as a celebration of Lisk’s greatest achievement to date. The event started with an extensive in-depth presentation of the Lisk Mainnet migration process by Max Kordek, CEO and Co-Founder of Lisk, which covered the main changes and improvements brought by Lisk Core v3. This dynamic event was a great opportunity for the Lisk community to interact with Lisk’s Research, Development, and Marketing teams. Once the migration block height was finally reached, Max held a casual discussion with Mona Bärenfänger (Technical Writer), Iker Alustiza (Research Scientist), Ishan Tiwari (Backend Developer), and Mitsuaki Uchimoto (Backend Developer), reflecting on the project’s major achievements, exchanging behind-the-scenes stories, and discussing relevant insights into their individual journeys. After the waiting period for the 201 blocks was over, the snapshot was successfully taken, and the Lisk Mainnet was migrated; then Monica Tartau, Marketing Lead, was invited on stage to discuss this outstanding achievement for Lisk. Monica answered questions from the community regarding the upcoming marketing plans and announced the 10 meme contests winners. The Lisk Mainnet Party was concluded after Max’s live AMA covering the successful Lisk Mainnet migration, the future of Lisk, and the plans for the upcoming months. Outlook: What’s coming next The successful migration of the Lisk Mainnet v2 marks the end of the “Emerald” phase, and the beginning of the “Sapphire” phase on our . With all the above-mentioned improvements in the protocol and code base, the new Lisk Mainnet v3 is perfectly prepared to integrate , which was presented to the public for the first time at . The interoperability is the final key feature missing, which will allow blockchain applications to register as a sidechain. This enables them to interact with the Lisk ecosystem, consisting of the Lisk Mainchain and all other connected sidechains. Roadmap Lisk’s interoperability solution Lisk.js this summer Development Focus: Lisk Interoperability The planning and development of the next major release of the Lisk SDK (v6) and subsequently of Lisk Core (v4) is already progressing at full speed. The release of Lisk Core v4 will bring Lisk’s interoperability solution to the Lisk Mainnet. The current progress can be viewed in real time by following the corresponding projects in our GitHub repositories: Lisk SDK projects Lisk Core projects Research Focus: Blockchain Interoperability So far, 40 LIPs have been published in total. An overview of all existing LIPs can be found in the on GitHub. Apart from the development progress towards interoperability, there are several new research objectives related to interoperability in the pipeline. LIPs repository The following 10 research objectives are nearly finished and will complete the research phase “Lisk Interoperability”: Chain registration Cross-chain messages Introduce the auth module Introduce the fee module Proof-of-Authority validator selection mechanism Properties, serialization, and initial values of the interoperability module Define state and state transitions of the random module Define state transitions of the reward module Introduce the validators module Add weights to Lisk-BFT consensus protocol The following supporting research objectives are already planned and are part of the research phase “Interoperability Improvements”: Reduce time to finality Provide relayer incentivization mechanism Generalize the transaction fee system After completing the Sapphire phase which includes the “Lisk Interoperability'' and “Interoperability Improvements'' milestones, the research team will concentrate on the Diamond phase with its research milestone “Blockchain Interoperability”, which will focus on interoperability of the Lisk ecosystem with other blockchain ecosystems such as Ethereum, Cosmos, Cardano, or Polkadot. This will result in a huge leap forward, as Lisk sidechains will then be able to communicate to blockchain applications in other ecosystems and vice versa. Blockchain interoperability is the next big evolutionary step for the Lisk ecosystem and will massively contribute to cooperations between a variety of projects located on different blockchain platforms. Finally, this is of key importance to advance the overall adoption of blockchain applications as a whole. Conclusion To summarize, we are delighted to finally present the new Lisk Mainnet v3 and all of its above-mentioned features and improvements that we have been working diligently on for the last 3 years. It has been a massive and complex task, which successfully resulted in the culmination and inclusion of all new features into one major and comprehensive migration of the Lisk Mainchain, to reduce the number of needed hardforks in the network. Now it is possible to take advantage of all the cool new features that you have been waiting for. However, rest assured this is just the beginning. The Lisk SDK can already be classed as a radiant gem, nevertheless, from now on it will be further improved and enhanced. With Lisk Interoperability coming, we are just one step away from having one of the most advanced and scalable interoperability solutions for blockchains that exist today. Finally, we want to thank everyone who accompanied us during this exciting time of moving Lisk to the next level. Firstly, our dedicated Lisk community, which is always supportive and helpful and continues to motivate and inspire us to improve further. Without your support, this would not have been possible. It has been extremely motivating to see how community members have utilized the Lisk SDK to realize a variety of innovative project ideas, the building of websites with useful services for the community; and the continual engagement in the , together with offering support to other community members. Finally, we also want to thank our community moderators and the community squad providing us with outstanding support and constructive feedback. We are eternally grateful to have such an active and supportive community, and are looking forward to continuing to provide support as the community expands and grows further. Lisk.chat Enjoy the new Lisk Mainnet everyone!

Meet the New Lisk Mainnet

The Lisk Mainnet will migrate soon to the updated Lisk protocol, which includes all the . Lisk Improvement Proposals (LIPs) from 0001 - 0036 The network will migrate by updating to Lisk Core 3.0.0, which will result in a hard fork, and will be the largest network migration to occur in the Lisk network so far. The launch of the new Lisk Mainnet will introduce various substantial changes in the Lisk blockchain, more information can be found in the previous blog posts: There are various updates and adjustments that need to be performed by the different stakeholders in the Lisk ecosystem to remain compatible with the Lisk Core 3.0.0 blockchain. This blog post explains how to prepare for the Mainnet launch of Lisk Core 3.0.0, in order to achieve a smooth and easy migration to the updated network. Tool & Service Migration Tools and services relying on the Lisk blockchain will need important updates to stay compatible with the Lisk network after the hard fork. This is particularly important for , and other , e.g. payment providers. exchanges, wallets, staking services, blockchain explorers third-party services The resources mentioned below are intended to provide an overview of the most important changes and how to update your tools & services accordingly. The Lisk community has developed a lot of helpful community tools in the past, which provided various useful services to other community members. We would like to take this opportunity to thank all of you for the variety of unique and outstanding contributions, and further to encourage you to prepare for the upcoming hard fork, and finally ensure all of your tools are upgraded to be compatible with the new protocol changes. For everyone who developed a proof of concept blockchain application with the Lisk SDK on versions 4.0.0 and below, it is highly recommended to update your applications to version 5.1.0, to be prepared for the upcoming interoperability solution. The following proof of concept blockchain applications are great examples which were financially supported by the Lisk Foundation to be migrated to the latest version of the Lisk SDK: Collabolancer ( ) GitHub Lisk Ticketing  ( ) GitHub Lisk DAO ( ) GitHub LiskCrowd ( ) GitHub Nash Stablecoin ( ) GitHub As already explained in the blog post , the Lisk Explorer will be discontinued after the Mainnet launch. It is replaced by various alternatives, such as the explorer functionalities in Lisk Desktop, the dashboard plugin for the Lisk SDK, and the browser-based Lisk blockchain explorers and . Replacing the Lisk Explorer Lisk Observer LiskScan Tools & Services that run their own Lisk Core Node Services that require running one or multiple Lisk Core nodes, will need to update their Lisk Core v2.1.6 node(s) to the latest version of Lisk Core v3.0.0. After the announced snapshot height is passed, it is recommended to stop and remove Lisk Core v2.1.6 and to perform a fresh installation of Lisk Core v3.0.0. When Lisk Core v3.0.0 is started for the first time, it will automatically start to sync with the network. The new Lisk Core comes with a brand new command-line interface (CLI), which greatly simplifies the management of the node. For example, it can be used to , to , or to to your Lisk Core node. In addition, a process manager such as PM2 can be deployed to . start Lisk Core enable forging create and send transactions run Lisk Core in the background Tools & Services Relying on Data from the Legacy Blockchain The Lisk Foundation will maintain a certain set of frozen Lisk Core v2.1.6 legacy nodes, which will serve as an archive for all data present on the Lisk Mainnet previous to Lisk Core v3.0.0. A corresponding legacy version of the Lisk Explorer is also accessible for at least one year. The final links for the Lisk Core v2.1.6 legacy nodes and the legacy version of the Lisk Explorer will be announced some time before the Lisk Mainnet v3 migration. Tools & Services Relying on the Lisk Core API Services that rely on the Lisk Core API will need to be updated to be compatible with the new API. As the Lisk Core HTTP API endpoints have been reduced, it is recommended to consider using the Lisk Service HTTP API and the new WebSocket-based APIs which are described in the following paragraphs below. Lisk Service HTTP API The Lisk Service HTTP API is intended to provide additional endpoints and enriched data about the Lisk network in addition to the Lisk Core HTTP API. To use the extended HTTP API, install Lisk Service and connect it to a Lisk Core node. Alternatively, you can also use the Lisk Foundation’s public API. Public Mainnet API: http://service.lisk.io/api Public Testnet API: http://testnet-service.lisk.io/api/ Check out the for more information. Lisk Service 0.3.0 HTTP API reference Lisk Service RPC API Lisk Service provides an RPC API that allows sending remote procedure calls via WebSockets to Lisk Service. This can be an efficient alternative to the HTTP API, especially if many requests need to be processed. Check out the for more information. Lisk Service 0.3.0 RPC API reference Lisk Service Subscribe API In addition to the RPC API, which allows sending API requests actively to Lisk Service, it is also possible to subscribe to various events of Lisk Service by utilizing the Subscribe API. Once you subscribe to an event such as update.block, Lisk Service will notify you instantly if the event occurred. Check out the for more information. Lisk Service 0.3.0 Subscribe API reference Lisk Core HTTP API The HTTP API received an extensive overhaul and as a result, numerous endpoints have changed or have been removed completely. Additionally, the HTTP API has become an optional plugin of Lisk Core. Set up your own Lisk Core node and enable the HTTP API plugin if you still wish to use the minimized Lisk Core HTTP API. Check out the new for more information. Lisk Core 3.0.0 HTTP API reference Lisk Core WebSocket API In addition to the HTTP API, it is now possible to send API requests via WebSockets, if WebSockets are enabled on the node. Listen to network events by subscribing to events and invoking actions on a Lisk Core node. The can be used to conveniently connect to the Lisk Core WebSocket API. Lisk API client Summary of the Most Important Protocol Changes A list of the most important changes in the Lisk protocol that will most likely affect your tools and services is shown below. For a complete overview of the implemented changes, it is recommended to study the . Lisk Improvement Proposals 0001 - 0036 Protocol Changes Related to Accounts : longer account address with checksum included. Lisk32 address . No account initialization is required for new Lisk Accounts anymore of 0.05 LSK. Accounts need to have a minimum balance Protocol Changes Related to Blocks & Transactions instead of static fees. Dynamic fees to mitigate transaction replay attacks. Added network ID of the sender account. Timestamp in transactions is replaced with the nonce need to be signed by all required signatories first before sending them to a node. Multisignature transactions . . New block ID format New transaction ID format Protocol Changes in the Consensus Algorithm (DPoS & BFT) when voting for delegates. Tokens are locked . 1 token can only be used to vote for 1 delegate can forge during each forging round. 2 random standby delegates with at least 10% of their total vote weight, otherwise, the vote weight is capped. Delegates need to self-vote The instead of 33. delegate vote transaction can include a maximum of 20 votes/unvotes by the network. Misbehavior of delegates (e.g. double forging) is punished ( ) Verify the finality of a block via API Average time to finality: ~155 blocks / 25min How to Migrate as a Delegate Delegates who are currently in active forging positions, and other node operators who want to migrate their node(s) need to adhere to the following steps: Wait until the snapshot height for the network migration is announced on and our social media channels. Lisk.com Follow the to migrate from Lisk Core v2.1.6 to v3.0.0 and enable forging for your delegate in the new network. migration guide your delegate. Self-vote All delegates who are not in the 101 active forging positions will now have the opportunity to forge blocks in the new protocol. Two random standby delegates are chosen for each forging round and can also participate in the forging process, making each round 103 blocks long. This also creates an incentive for standby delegates to run a node and enable forging on it for their delegate. Old address format Lisk Core v2.1.6 and lower: 946075738761018629L Corresponding public key: 0xe877c250d725ac7ca6c5d9d83b39645de7eebe6c4ae6e076da7163434d297c7d New address format from Lisk Core v3.0.0 onwards: lskzkfw7ofgp3uusknbetemrey4aeatgf2ntbhcds The new address format, which is also called Lisk32 representation, is always 41 characters long, contains decimal digits and lower-case letters from the Latin alphabet, and starts with the prefix ‘lsk’. The last 30 bits of the address represent a checksum, which allows a user to mistype up to 4 characters in the address and it is guaranteed that the application will detect it. . For more information about the new address system, read our blog post New Lisk ID system Accounts with a second passphrase will be converted to multisignature accounts which always require two signatures to validate transactions. To view your new address after the migration, update Lisk Desktop to version 2.0.0 and log in as usual with your passphrase, then the new address of the account will be displayed. After the network migration, the new protocol changes for the DPoS system will be implemented in the network. This requires all accounts in the network to reassign their votes. To guarantee a smooth transition of the new DPoS consensus algorithm, there will be a one-week transition period after the network migration, giving accounts in the network enough time to cast their votes in the new DPoS consensus algorithm. At this point, it’s not certain that hardware wallets will be immediately supported after the migration. If users wish to access their LSK tokens immediately after the migration, they should move them to a regular Lisk account before the migration. We will collaborate with all relevant parties to bring hardware wallet support back as soon as possible. Once we have more information on when hardware wallet support will be available, we will send an update on our social media channels. Please be also aware that Lisk Mobile will not be supported right after the migration. Support for Lisk Core 3.0.0 will be added as soon as possible afterwards. Alternative wallet implementations from third parties might also not be supported right after the migration. We recommend using the Lisk Desktop wallet until then. How to Vote for Delegates The voting of all delegates will be reset after the Mainnet hard fork so everyone who wants to participate in the new DPoS voting system will need to recast their votes. There is a one week period starting from the network hard fork, whereby votes should be reassigned. After one week has passed, the new DPoS consensus algorithm will become fully active and a new top 101 delegates selection will start forging blocks. Lisk Desktop v2.0.0 continues to provide a convenient user interface to cast votes for delegates, just as before the hard fork, however, the voting process works in a significantly different manner now. The tokens used to vote for delegates will now be locked and can be unlocked if required, by unvoting the delegate again. For instance, let's assume you hold an account with a balance of 100 LSK. It is possible to use only a part of your tokens for voting, but let’s assume you want to vote with all 100 LSK. It is possible to split your tokens amongst multiple delegates or to use all of them to vote for only one delegate. For example, it is now possible to vote for 10 delegates with 10 LSK, or alternatively just for one delegate with the full amount of 100 LSK. The amount of tokens used for voting is locked and cannot be used for any other transactions. This includes but is not limited to further voting, balance transfers, or transaction fees. To use the locked tokens again, the account has to submit a delegate unvote transaction. This will start the unlocking procedure and the LSK tokens will be ready for unlocking 2,000 blocks later (approximately 5 hours and 30 minutes). After a 2,000 block period has passed, the tokens can be unlocked. This is done with a new unlock transaction. The token unlock transaction specifies which tokens have to be unlocked and added back to the balance. This mechanism is required to allow blocks to be reverted, however, future improvements of the Lisk blockchain could remove the need for this unlock transaction. How to Migrate an Uninitialized Account If you have an uninitialized Lisk account, it is highly recommended to as soon as possible, by sending one outgoing transaction. If you have already initialized your account before the Mainnet migration, then no other steps are necessary. initialize it In the case whereby an account was not initialized before the migration, the following steps need to be performed to migrate your legacy account to the new network: Update Lisk Desktop to the latest version 2.0.0. Login with your passphrase and check the new address format for your account. Fund your account with some LSK tokens (e.g. 1 LSK), for example by transferring the tokens from an exchange. Perform the reclaim transaction from within Lisk Desktop. Summary In short, the upcoming launch of the new Lisk Mainnet will be the largest network migration in the Lisk network so far, and if you have a service which is relying on data from the Lisk blockchain, it will be mandatory to make the corresponding updates to stay compatible with the network after the hard fork. Developers: Ensure your services and applications will be compatible with the new protocol changes by setting up a node with the latest beta version of Lisk Core v3.0.0. The public is already running a beta version of Lisk Core v3.0.0 and it can be used for testing purposes before the Testnet and Mainnet launch. Lisk Betanet Delegates: Make sure to follow the in the documentation. Lisk Core migration guide Normal users: Ensure to reassign your votes in Lisk Desktop during the first week after the network migration. Everyone: Grab some popcorn and enjoy the Lisk network entering a new era! \o/

Everything You Need To Know About Lisk Mainnet Migration

This blog post is part of the interoperability blog post series taking a closer look at various aspects of the Lisk interoperability solution. In this blog post, we introduce one of the cornerstones of Lisk-interoperability: The state model of an interoperable chain. To do so, we will first talk about sparse Merkle trees, introduced to the Lisk protocol in LIP 0039 . Sparse Merkle trees are the fancy relatives of the regular Merkle trees. If you are not familiar with Merkle trees, we suggest you first read , as it will give you an introduction to many concepts we will discuss here. my previous blog post Next, I will present the , focusing finally on what will change from a developer perspective when interoperability is implemented into the new SDK. state model, the state tree, and the new store interface Last month at Lisk.js 2021, the research team fully unveiled and presented the . Lisk.js is an annual event where developers can learn how to develop a blockchain application using the Lisk SDK and get the latest news about the Lisk protocol. Shortly after Lisk.js 2021, to the . Lisk interoperability solution all core interoperability LIPs were published research forum Sparse Merkle Trees Crash Course A sparse Merkle tree (SMT) is an authenticated data structure organized as a tree, built on top of a key-value map. A key-value map is a collection of (key, value) pairs such that each key appears at most once. It supports the following operations: : Returns the value associated with a certain key. Look up Inserts a certain key-value pair in the collection. Insert: Updates the value associated with a certain key. Update: Removes a certain key-value pair in the collection. Delete: Consequently, the SMT also supports these operations, as explained in the following section. The SMT is constructed from the key-value map as follows. Each possible entry of the key-value map corresponds to a leaf node of the tree. Each leaf node has a key and value (corresponding to the entry key and value) as well as a hash property, obtained by hashing together the key and the value. If an entry is not present in the map, we just assign an empty leaf node to it (a node with an empty value and a constant hash). The position of the leaf node in the tree is fixed by its key. For instance, for a key length of 5 bits, the first leaf node has key 00000, the next ones have 00001, 00010, and so forth. Parent branch nodes are obtained by hashing together two child nodes recursively, until at the top we are left with a single node, the Merkle root of the tree. Consequently, each branch node has a left child, right child, and hash property, obtained by hashing together the child nodes hash values. As a technical sidenote, we use different hash functions for leaf and branch nodes to prevent second image attacks (see section "Leaf versus Branch Hash" ). blog post Figure 1: A complete sparse Merkle tree. Each possible key in the underlying key-value map has a corresponding leaf node in the base layer. Branch nodes (yellow boxes) are obtained by hashing recursively pairs of leaf nodes (green boxes), until a single node, the Merkle root (blue box), is reached. If the key length is 32 bytes, the tree has 256 layers (here elided for clarity) and 2256 leaf nodes. This is very reminiscent of regular Merkle trees, introduced in , with a very important difference: The order of insertion of data blocks does not matter, and the root of the tree only depends on the final state of the map. LIP 0031 In cryptography, this means that a SMT is a cryptographic accumulator [1]. An accumulator is a hash function that possesses this history independence (quasi-commutative property) and allows for efficient inclusion proofs: a Prover is able to convince a Verifier that a certain element is present in the underlying data structure without revealing any other element, and the proof size scales logarithmically with the number of data blocks. In a SMT, the input of the hash function is the underlying key-value map and the output is the Merkle root. Due to the history independence, SMTs are the suitable choice to authenticate key-value maps. On the other hand, a regular Merkle tree is an example of a vector commitment [2], because the underlying data structure is an array. This means that the Merkle root also authenticates the order of the data blocks in the array. This property can actually be very useful, e.g. to authenticate or the order of , and in general if we are working with arrays. the transactions included in a block cross-chain messages in the Lisk interoperability solution However, inserting a new data block at a specific position cannot be done efficiently, as the whole tree would need to be recomputed. Due to this fact, regular Merkle trees are not suitable to authenticate key-value maps but they are the suitable choice to authenticate arrays, where new data blocks are only appended. Figure 2: Comparison between a RMT (left) and a SMT (right). In the RMT, the underlying data structure is an array of data blocks, in this example the transactions inserted in a block. In a SMT, the underlying data structure is a general key-value map, in this example with only some non-empty key-value pairs. The RMT is suitable to work with an array, and the Merkle root (blue box) also authenticates the insertion order. A SMT is suitable to work with key-value maps, and the Merkle root does not depend on the insertion order. SMTs also have another nice property, in that they support efficient non-inclusion proofs: The Prover can convince the Verifier that a certain entry is not present in the map, and the proof size scales logarithmically with the number of data blocks. Because of this property, SMTs satisfy the definition of universal accumulators [4]. This tool can be useful in a variety of situations: Imagine the government is maintaining a central register of everyone that tested positive to Covid in the last month. Each person is assigned an ID which is the combination of their national ID number and the current month. The central register is then organized in a SMT, and to enter a public event, everyone has to show with a non-inclusion proof that their ID is not part of the central register. However, there is a catch: As mentioned before, the SMT contains one node for each possible key, which for 32 bytes (256 bits) keys gives 2256 leaf nodes and 256 layers. Notice that in any realistic scenario, the vast majority of these leaf nodes would be empty, with no associated entry in the underlying map (hence the name sparse Merkle tree). Storing and manipulating such an astronomical number of nodes is impossible. Therefore we rely on the following optimizations: Each subtree with exactly one non-empty leaf is replaced by the leaf itself. Each subtree containing only empty nodes is replaced by an empty node, a constant node with a fixed hash value. The resulting construction is similar to Jellyfish Merkle trees proposed for the Diem protocol [5]. If the keys are distributed randomly, we obtain a tree with a number of layers that scale as Log(N), where N is the number of entries in the map. This guarantees that operations on the tree take on average Log(N) steps and (non-) inclusion proofs have on average size Log(N) Figure 3: We apply two optimizations to reduce the number of nodes in the tree: 1) Any subtree with exactly 1 non-empty node (green box) is replaced by the node itself. 2)  Any subtree with only empty nodes (white boxes) is replaced by an empty node. Yellow boxes represent branch nodes. Operations on the Tree A crucial property of an SMT is the ability of adding, removing, and updating elements of the tree, for instance when the underlying map is updated. For our purposes, a key not present in the map can be considered as if it was paired with an empty value. In this sense, inserting can be seen as an update operation on a previously empty value, and deleting as an update operation to set a value to empty. An accumulator supporting these operations is called a dynamical accumulator [3], although strictly speaking in the literature this property requires a cost constant with the number of accumulated elements, while we make do with logarithmic scaling. Update Whenever we want to update a leaf node, the general strategy is to start from the root and navigate the tree downwards. The key of the new leaf is used to decide whether we should move to the left or right child, by looking at the binary representation of the key and moving to the left if the next digit is a 0 or to the right if it is a 1. We repeat this process until a leaf or empty node is encountered. If the final node has the same key of the new leaf, we simply update its value. Otherwise, if it is an empty node, we replace it with the new leaf. Figure 4: To add a new leaf node to the tree (dashed red box, leaf key = 5), we navigate from the root to the new leaf position using the digits of the binary representation of the leaf key. When an empty node is encountered (white box), we replace it with the new leaf. If instead the final node is a leaf node, we create new branch nodes until the keys of the new node and the final node diverge, and we add these nodes as children to the last branch node. Empty nodes are inserted as children of the new branch nodes as necessary. Finally we update all the branch nodes that were visited in this process. Figure 5: To add a new leaf node to the tree (dashed red box, leaf key = 3), we navigate from the root to the new leaf position using the key. When another leaf node is encountered (green box), we create as many branch nodes as necessary and add the two leaves as children. Proof Generation and Verification Generating a proof works in a similar way. We navigate the tree until we find a leaf or empty node. If the final node is the one we were generating a proof for, we have an inclusion proof, otherwise the queried node is not in the tree and we have a non-inclusion proof. The hashes of unvisited sibling nodes encountered in the process are given to the Verifier as part of the proof. However, we do not want to add the empty nodes, as their hash value is a protocol constant already known by the Verifier. Instead, we add a bitmap indicating which nodes in the inclusion path are non-empty. In addition, we also support multiproofs, i.e. (non-)inclusion proofs for multiple nodes at once, which saves even more proof space. In this case the Verifier is able to recalculate some of the required hashes from the elements they already hold. For instance, the example in Figure 6, below, depicts the multiproof for nodes A, B, C, and D (red-bordered boxes). Nodes B and C are part of the tree, while nodes A and D are not. Therefore, the Prover returns an inclusion proof for nodes B and C as well as the empty node in the path of node A and the leaf node in the path of node D. The multiproof includes all the hashes of the sibling nodes encountered in the path (red filled boxes), as well as an individual bitmap for each queried node. For example, the bitmap for node A would be 1011, where the 0 indicates the presence of an empty node in the path. Figure 6: An example of a multiproof. The queried keys correspond to leaf nodes A, B, C, and D (red-bordered boxes). Leaf nodes A and D are not part of the tree (the box border is dashed out). In this case, the non-inclusion proof is provided by proving the presence of an empty node or another leaf in the path to the queried node. The Prover provides the hashes of the nodes represented by filled red boxes as part of the proof. The Verifier can recompute the Merkle root using these hashes, starting from the queried nodes. Empty nodes in the path are indicated using a bitmap for each queried node. The verification process consists in recalculating the Merkle root starting from the queried node, using the sibling hashes and the bitmap provided in the proof. Terminology Summary Quasi-commutative hash function with efficient inclusion proofs. Cryptographic accumulator: Accumulator supporting efficient update (adding/deleting/updating key-value pairs). Dynamic accumulator: Accumulator supporting non-inclusion proofs. Universal accumulator: Cryptographic primitive authenticating arrays. Vector commitment: Now that we have covered the technical part, let us discuss how SMTs will be used in the new state model. As mentioned, SMTs are the natural choice to authenticate a key-value map, hence they are the perfect tool to authenticate the state store of a chain. We create a SMT on top of the state store, the state tree, and insert the Merkle root of this tree, the state root, into each block header. This provides several benefits: The state root is used during the processing of to authenticate the outgoing messages from one chain. Interoperability: cross-chain update transactions All nodes in the network will be able to check the consistency of the state just by checking the state root. For instance, if a block contains a transaction that randomly credits either a user A or a user B with tokens, then any node obtaining a different result from the block forger would immediately reject the block, as the two state roots would differ. State consistency: The state root can be used to provide efficient proofs for the state of a certain account. Light clients: A blockchain created with the Lisk SDK defines a single global store. Each module registered in the chain defines its own generic key-value map, whereby each element is identified by the following properties: The ID of the module, identifying the key-value map. We will reserve all module IDs starting with a 0 in their binary representation to modules that are shipped with the SDK by default. The IDs of modules developed as part of each blockchain application will start with a 1. The module ID has a fixed length of 4 bytes. Module ID: Each module can define several buckets, to separate different data structures within the store. Each bucket is identified by the store prefix. The store prefix has a fixed length of 2 bytes. Store prefix: The store key identifies a certain element within a store bucket. Store key: The schema used in Lisk codec to serialize the value SON schema: Figure 7: State tree of a Lisk blockchain. The Merkle root of the tree, the state root (blue box), authenticates the chain state. Each module defines its own store (colored boxes). SDK and application-specific modules are separated by imposing that their module IDs start with a 0 (SDK modules) or with a 1 (application modules) in their binary representation. Each element has a corresponding leaf node in the state tree, with the following properties: The key of a leaf node is the concatenation of the moduleID, the store prefix, and the hash of the store key. Prepending the module ID allows to separate different subtrees for each module, while the store prefix separates different bucket subtrees within a module subtree. The store key is hashed to ensure that leaf nodes are randomly distributed within a certain store bucket. Hashing the store key also fixes the length of a leaf key to be 4+2+32 = 38 bytes. As a consequence, the state tree has at most 38*8 = 304 layers, although this is very unlikely to be the case given our optimizations. Key: The value is given by the hash of the element value. Value: The hash equals the leaf hash of key and value. Hash: Hashing the store key and the values when creating a leaf node has the additional advantage of not having to reveal the real key and value of the entry in the underlying map when creating a non-inclusion proof. Figure 8: A zoom in on the state of the token module. User balances are stored in user store buckets, while information about native tokens sent to other chains is stored in the escrow store. The key of the corresponding leaf node is given by the concatenation of the token module ID (4 bytes = 32 layers), the user store store prefix (2 bytes = 16 layers), and the hash of the store key (32 bytes, Log(N) layers because of the optimizations). For the user store, the store key is given by the concatenation of the user address and the token identifier. The value is serialized using the user store schema . For the escrow store, the store key is given by the chain ID. The value is serialized using the escrow store schema . This new state architecture is substantially different from the one defined in . Previously, the state of a chain was organized per account rather than per module. For instance, the balance of a user would be stored together with all the other properties related to that specific user (see ). Instead, in this new state model the balance of a user is stored in the token module state, separated from all other properties. LIP 0030 example in LIP 0030 Separating the state store into several key-value maps allows us to logically compartmentalize each module, following the same mantra behind our chain architecture: Every module defines its part of the state and its own state transitions: The key-value pairs stored in the map of the module. For example, the user balance and the escrow accounts stored in the token module. Module state: The transactions defined in a module (for example, the token transfer transaction in the token module) as well as the logic executed with every block or transactions, such as the reward assigned to the forger after a block has been processed. Module state transitions: What's New for Developers In the SDK version 5, when creating a new module developers have to specify the JSON schemas used for serializing data structures with . In the next iteration of the SDK, developers will define the store prefix, store key, and the JSON schema for each data structure in their custom module. If you need any inspiration, please see the . Lisk codec interoperability module LIP Conclusion introduces sparse Merkle trees to the Lisk protocol. The new version of the SDK will implement sparse Merkle trees to authenticate the state of the blockchain into the state root, as specified in . As such, sparse Merkle trees will be a cornerstone of Lisk interoperability, but in the future they could also be used in other parts of the protocol. LIP 0039 LIP "State model and state root" For further questions and comments on the topic, we will host an AMA on Lisk.chat with Alessandro Ricottone (Research Scientist), next Friday, June 25th at 4 pm CEST. We also invite all community members to go to the Lisk Research forum where we are always happy to hear your feedback and to participate in discussions on this and other topics. External References [1] https://cs.nyu.edu/~fazio/research/publications/accumulators.pdf [2] https://eprint.iacr.org/2011/495.pdf [3] https://link.springer.com/chapter/10.1007/3-540-45708-9_5 [4] https://link.springer.com/chapter/10.1007/978-3-540-72738-5_17 [5] https://diem-developers-components.netlify.app/papers/jellyfish-merkle-tree/2021-01-14.pdf

Sparse Merkle Trees: The New State Model for Lisk's Interoperability

One of the central topics at our recent Lisk.js 2021 event, and the one we are most proud of in the Research team, was the publication of the Lisk interoperability solution. Since we announced that was completed one year ago, the main focus of the team has been on the Lisk interoperability phase of the roadmap. all the research up to blockchain interoperability This phase started with of the topic. With all the gathered information, we then determined . an extensive state-of-the-art overview the general direction of the interoperability solution Finally, it was all about specifying the details of the solution and performing internal reviews. The concrete LIPs were finally published during Lisk.js 2021. We now take great pride in the fact that we have proposed a scalable and decentralized interoperability solution for the Lisk ecosystem. To easily comprehend the entire interoperability solution, we organized it around 8 roadmap objectives. Each roadmap objective defines one key aspect of our interoperability solution that is addressed by one or more LIPs. For these LIPs, we distinguish between interoperability core LIPs and supporting LIPs. The former ones, 12 LIPs in total, specify the core part of the Lisk interoperability solution. The remaining ones, around 14 LIPs, are not strictly part of the interoperability solution, but they provide the necessary building blocks for it to happen. Some of these are already present in our research forum and the remainder will be published in the next few weeks. Let’s have a look at these 8 roadmap objectives and the specific LIPs that achieve them. The 8 Roadmap Objectives Define Cross-chain Messaging Protocol The goal of this roadmap objective is to introduce the data structures and the transactions necessary to exchange messages between chains participating in the Lisk interoperability. The LIP specifies the new data structures that will be part of the interoperability module. Additionally, this LIP also provides a broad overview of the Lisk interoperability solution, motivating several design choices for the interoperability module. Properties, serialization, and initial values of the interoperability module The LIP to the interoperability module. Cross-chain update transactions are the carriers of the information transmitted between chains. By posting a cross-chain update, the receiving chain gets the information required about the advancement of the sending chain. The transaction can also include cross-chain messages and thus serves as an envelope for messages from one chain to another. introduces cross-chain update transactions Figure 2: The cross-chain messages, CCM1, CCM2, and CCM3 are collected together with the certificate, Cert, from the sending chain and inserted into a cross-chain update transaction, CCU. Then CCU is included into the receiving chain. The LIP define those cross-chain messages, their schema, their processing, and the base error handling. Defining a base cross-chain message allows all chains in the ecosystem to read and understand the base properties of messages. Any transaction triggering a cross-chain interaction should emit a cross-chain message to transfer the necessary information to the receiving chain. Cross-chain messages Define Sidechain Registration and Lifecycle This objective aims to define the lifecycle of a sidechain, starting from its connection to the Lisk ecosystem, realized by its registration on the mainchain, up to its potential termination including the recovery mechanisms from terminated chains. The LIP introduces the concept of chain registration in the Lisk ecosystem. This step is necessary to make a sidechain interoperable with the Lisk mainchain, in other words, to connect and become part of the ecosystem. Particularly, for the Lisk mainchain, this registration process is performed by the sidechain registration transaction, whereas for sidechains, it is done by the mainchain registration transaction. Once both transactions have been processed, the registration process of the sidechain is completed and it is ready to interoperate in the ecosystem. Chain registration In the Lisk ecosystem, the ability of a sidechain to interoperate with other chains can be revoked permanently, i.e., terminated, under certain conditions. Once a sidechain is terminated in the ecosystem, the users of the said chain cannot have any cross-chain interaction with it. This means they will no longer be able to send or receive any (fungible or non-fungible) token or message from or to the sidechain. For this reason, the LIP specifies three transactions that can be used to recover messages, tokens and NFTs from terminated sidechains. These three new transactions are the message recovery transaction, the token recovery transaction, and the NFT recovery transaction. Sidechain recovery transactions Define State Model and State Root The goal of this roadmap objective is to introduce a new state model and the concept of state root in the Lisk protocol. The LIP adds a new data structure to the Lisk protocol, the sparse Merkle tree, and the format for inclusion proofs. A sparse Merkle tree is an authenticated data structure that allows the validation of a key-value dataset with a single hash value, the Merkle root. It differs from a regular Merkle tree in that every element of the dataset occupies a fixed position in the tree, given by its key, and the resulting Merkle root depends only on the final dataset and not on the order of insertion. Introduce sparse Merkle trees The LIP defines the state architecture of a chain in the Lisk ecosystem. In particular, a sparse Merkle tree, namely the state tree, is built on top of the generic key-value stores defined by each module of the chain. The whole state is therefore authenticated by the tree Merkle root, the state root. State model and state root Figure 3: The state tree of a generic blockchain following the specifications in the LIP "State model and state root"Introduce Token Standards for the Lisk Ecosystem The goal of this roadmap objective is to introduce the data structures and transactions to be used to handle tokens in the Lisk ecosystem. The LIP introduces a module to be used in the Lisk ecosystem for minting, burning, and transferring tokens. This module allows any chain in the ecosystem to handle and transfer tokens in a coherent, secure, and controlled manner. In this LIP, the tokens handled are fungible. Furthermore, this proposal defines the storage and transactions for the LSK token. Introduce an interoperable token module The LIP introduces a module to be used in the Lisk ecosystem for creating, destroying, and transferring NFTs. NFTs are uniquely identified assets, in contrast to fungible tokens which are indistinguishable. They can be created, destroyed, and transferred similarly to fungible tokens, however their unique identifiers can never be modified. In this module, NFTs also carry a list of attributes that are used to store information specific to the NFT. Introduce a non-fungible token module Update Lisk-BFT for Interoperability Lisk-BFT is the new consensus protocol introduced as part of Lisk Core 3.0. It defines a protocol for validators to finalize blocks using two rounds of voting on blocks. In order to support the new Proof-of-Authority mechanism and cross-chain certification for interoperability, the Lisk-BFT protocol requires some modifications that are encompassed by this roadmap objective. The LIP defines how to generalize the Lisk-BFT consensus protocol by allowing for different finality weights of the validators participating in the consensus protocol. A finality weight defines the amount with which the corresponding validator contributes to finalizing blocks. Additionally, the LIP specifies how these weights, as well as the weight threshold for considering a block final, can change over time. Add weights to Lisk-BFT consensus protocol In the Lisk interoperability solution, certificates are the key object for transferring information about the state of one chain, such as cross-chain messages and validator changes, to another chain in a secure manner. The LIP defines the schema of certificates, how they can be computed from blocks and how they are signed using BLS signatures. It further specifies commit messages, which are messages containing BLS signatures of certificates. These messages are used to share certificate signatures via the P2P network. This way, validators can aggregate all signatures of a certificate into one signature, which is subsequently included in a block. The mechanism ensures that all certificate data, including the signature, is available on-chain and anyone can use it for creating a valid cross-chain update transaction. Introduce a certificate generation mechanism Finally, the LIP specifies a new condition to unlock tokens in DPoS blockchains. Currently, if delegates or normal users unvote, they are subjected to a time-based locking period (around 6 hours for users and 30 days for delegates), before being able to access their funds. In addition, this LIP will require that a certificate for a block after the unvote is generated before delegates or normal users can unlock their tokens. This condition incentivizes delegates to sign certificates. It also prevents a large number of delegates from unlocking their funds without signing any further certificates and thereby halting the certificate generation process. Introduce unlocking condition for incentivizing certificate generation Update Block Header Format The block header schema was touched in several other LIPs, including the LIP or the LIP Introduce a certificate generation mechanism. This roadmap objective aims to cover all changes to the block header schema in one place, which is achieved by the LIP . State model and state root New block header schema Introduce Alternative Validator Selection Mechanism for Sidechains Currently, the SDK offers DPoS as the only validator selection mechanism by default for new blockchains. This objective aims to provide alternative mechanisms for future sidechains so that they can adapt for a wider range of use cases and applications. In particular, the LIP introduces the Lisk Proof-of-Authority (PoA) mechanism for the selection of validators to generate blocks. In PoA blockchains only a pre-defined set of validators, called the authorities, can propose blocks and they are selected based on off-chain information such as their reputation or identity. This system trades the decentralization of the network (arbitrarily selected authorities), for efficiency and performance. Proof-of-Authority validator selection mechanism That is why a PoA blockchain is especially attractive for small projects or blockchain applications where the project owners are expected to run the network nodes. Due to the simplicity of its validator selection algorithm, it is also suitable for applications where a high transaction per second throughput is important. Enhance Signature Scheme This roadmap objective has two main goals. The first one is to enable compact aggregate multisignatures. Without them, the certificates contained in a cross-chain update transaction would be significantly larger. The second one is to remove any security risk of signature re-purposing and signature replays that may occur once new data structures are signed within the Lisk ecosystem. The first goal is achieved by the LIP which introduces BLS signatures to the Lisk ecosystem. More precisely, it specifies which variant of the BLS signature scheme to use and how to apply it in Lisk blockchains. BLS signatures The LIP BLS signatures is complemented by the LIP . This one serves two purposes. The first one is to provide a BLS public key to a validator account which is a necessity to make use of aggregate BLS signatures for certificates. The second one introduces a separate EdDSA forging key pair for validators. This allows validators the possibility to not store the (encrypted) secret key or passphrase used for transaction signatures on a remote server. This purpose is strictly speaking not required for the interoperability solution. However, as this LIP is touching the key pairs of validators, it was seen as a chance to easily introduce this security measure for validators without additional conflicts. Add BLS and forging public key to validator accounts The second goal of the road map objective is achieved by the LIP . This LIP ensures that a signature for one message cannot be a valid signature for another message that serializes to the same binary message. This is of key importance, as in the future there won’t be only transaction and block signatures, but also signatures for other data structures such as certificates or certain data structures defined in some sidechain protocols. Moreover, we generalize the usage of the network identifiers, which are currently used for transaction and block header signatures, to arbitrary signatures. This will prevent replay attacks for arbitrary messages. Use message tags and network identifiers for signatures What is Next For Lisk Research If you watched Lisk.js 2021, then you are surely aware that the Research team's work is far from over. With the publication of the entire amount of interoperability and supporting LIPs, the team will first focus on an improvement phase for the interoperability solution. During this phase, we will work on topics such as reducing the time for finality in the consensus mechanism, or providing a sound incentivization for the role of the relayer in the interoperability solution. We will also collaborate with our colleagues in UI to ensure that the accessibility for end-users to the Lisk ecosystem is as seamless and secure as possible. In general terms, with the completion of this phase, the Lisk ecosystem will reach a higher level of future-proofness. Looking further ahead, one of the key features to be added to the Lisk ecosystem is the capability to interoperate with other existing ecosystems. This will be the goal of the blockchain interoperability phase crystalized in the concept of Lisk bridges. Once this roadmap objective is completed, the Lisk ecosystem will not only be a solid autonomous blockchain application platform but also a universally interoperable blockchain solution. Figure 4: With the milestone 4 completed, the Research team will start working on the milestone 5 of the Lisk interoperability phase, followed by the blockchain interoperability phase. In the meantime, we encourage the entire Lisk community, and particularly those with a technical focus, to discover every detail of our interoperability solution in the and give feedback about it. Research forum Lisk’s Roadmap to Ecosystem Interoperability Revealed at Lisk.js 2021 on May 21st, the new Lisk roadmap introduces names of different gems for all our roadmap phases. The roadmap outlines the network’s transformation from Quartz to Diamond and describes the increase in capabilities as the technology advances through 6 unique roadmap phases. Currently, in its fourth phase, Emerald, which symbolizes a new beginning and good health, the Lisk network will now transition into its Sapphire phase, bringing full interoperability to the Lisk blockchain application platform. Below is a chronological list of the phases outlined in the Lisk roadmap. - This phase represents the creation and emergence of Lisk, born from the word Obelisk, namely the shape of Quartz. This gem is well known to display the properties of pure light and energy which contains the entire spectrum of colors. Due to its shape and meaning, the first roadmap phase is called Quartz. This phase was achieved on 24th May 2016 and represented Lisk Core v0, the MVP, and the launch of the Lisk network. Quartz - This phase represents the addition of new changes and updates like creating the minimal wallet Lisk Nano, a command-line wallet Lisk Commander, a suite of useful blockchain libraries, Lisk Elements, and drastic improvements in stability and security of Lisk Core resulting in a stable Lisk network. This phase was achieved on 16th August 2018, Lisk Core v1, creating a stable network with limited functionality. Amber - The ruby gem is associated with an inner fire within the soul, revealing its presence and inspiring great success. This phase mirrors the successful development of the Lisk SDK and resulted in the creation of a new flexible, resilient, and modular architecture. This phase was achieved on 23rd July 2019, Lisk Core v2 was built with the newly introduced Lisk SDK. Ruby - Emerald refers to both health and renewed life, being the intuitive stone associated with the revelation of future events. Emerald is the current phase Lisk is in and it is in perfect alignment with our foresight towards the future by developing new protocol enhancements. This phase will be achieved this fall with Lisk Core v3, built with the Lisk SDK v5, featuring multiple protocol improvements like a new fee system, new address system, and new consensus algorithm. Emerald - The Sapphire phase is known for its communication properties and transformative energy which corresponds to our interoperability journey by developing our protocols towards achieving communication between different Lisk blockchains. This phase introduces Lisk’s interoperability, its implementation begins immediately from May 21st, 2021. Sapphire - The diamond is known for being the ultimate pure gem with absolute beauty. Diamonds promote imagination and creativity, accomplishing the most complicated ideas. This resonates perfectly with the complex ongoing work right at the cutting-edge of technology. This phase expands the interoperability protocol to third-party blockchains for full blockchain interoperability, which will be achieved through ‘Lisk bridges’. Possible candidates include Ethereum and Polkadot, enhancing the scalability and usability of the entire industry. Diamond While networks differ in security, privacy, and throughput, interoperability will allow cross-communication between varying networks, circumnavigating the hindrances associated with different blockchain networks. Continued expansion and innovation in the space of blockchain interoperability will lead to greater accessibility, allowing for wide-scale use and mass adoption. blockchain

Lisk's Interoperability Solution: An Overview

In the previous research blog post , we provided an overview of various methods for blockchain interoperability. "Introduction to Blockchain Interoperability" The blog post described different types of blockchain interoperability, ranging from cross-chain token exchange to general cross-chain messages. Moreover, we presented several technical solutions for each case. For instance, regarding general cross-chain messages, we explained cross-chain certification, heterogeneous blockchain sharding, and rollups. We already revealed that the Lisk interoperability solution aims to enable general cross-chain messages. In this blog post, we now explain how this is achieved by providing a high-level overview of the Lisk interoperability solution similar to the online presentation given in the at the Lisk Updates from the Lisk Center, Berlin event from November 2020. Moreover, we can now unveil our updated roadmap that contains all the objectives of the blockchain interoperability phase. "First Glimpse at Lisk Interoperability" Technical Solution introduced in detail in the previous research blog post "Introduction to Blockchain Interoperability". Basically, cross-chain certification means that information from one chain is submitted to another chain utilizing a signed object called a certificate. Let us see more specifically how this will work in the Lisk ecosystem. Our interoperability solution is based on the paradigm of cross-chain certification Cross-Chain Update Transactions We will now consider the simplified case of two interoperable chains, where one is the sending chain and the other one the receiving chain. To send information from the sending chain to the receiving chain, the first step is to include a transaction on the sending chain. This transaction then emits one or more cross-chain messages which carry the relevant information that is supposed to be sent to the receiving chain. The cross-chain messages are then transferred to the receiving chain. However, we do not send a cross-chain message to the receiving chain right after the corresponding transaction was included. Instead, several cross-chain messages, possibly from multiple blocks or even rounds, are collected together and are put into a cross-chain update transaction, which is then posted on the receiving chain. This concept is also illustrated below in Figure 1. Therefore, we also called the general technique “cross-chain update” instead of “cross-chain certification” for simplicity in the online presentation given in the . Cross-chain update transactions are in fact the main transactions facilitating interoperability in the Lisk ecosystem and our realization of cross-chain certification. "First Glimpse at Lisk Interoperability" The transactions t1 to t3 are included in the sending chain over the course of some blocks, where each one emits one cross-chain message, denoted by m1, m2, and m3. The cross-chain messages are put into one cross-chain update transaction, denoted by CCU, that is posted and included in the receiving chain. Figure 1: The Lisk ecosystem will, of course, consist of more than just two chains. Therefore, the solution is also slightly more sophisticated than previously explained. That means, for example, that a cross-chain update transaction may contain several cross-chain messages that target different chains. This will be further explained in the sections below. Note that there is no rule on how many messages must be collected before a cross-chain update transaction is created or for how many blocks one must collect messages before creating one. There is full flexibility, and any user could create a cross-chain update transaction whenever they want by taking all cross-chain messages that were not put into a cross-chain update transaction before. Content of Cross-Chain Update Transaction Cross-chain update transactions consist of the following three major parts: The cross-chain messages. A certificate. Information about the current validator set of the sending chain. We already described the first part, the cross-chain messages, above. A certificate is an object containing information from a finalized block header that is signed by a large portion of validators from the sending chain and thus authenticates a finalized state of that chain. An authenticated finalized state is a requirement for accepting cross-chain messages on the receiving chain. That means a cross-chain message is applied on the receiving chain only if it was attested that the corresponding transaction on the sending chain belongs to a finalized state. With the information about the current validator set of the sending chain, the receiving chain knows which validator set is eligible to sign the next certificate. Cross-Chain Update Transactions originating from the Lisk Mainchain Let us first consider the case where the sending chain is the mainchain. There will be several sidechains connected to the mainchain. Therefore, the cross-chain messages created on the mainchain will also target different sidechains. To submit cross-chain messages from the mainchain to a specific sidechain, all cross-chain messages targeting this sidechain are put into a cross-chain update transaction, omitting the cross-chain messages targeting other chains. This transaction is then posted on the sidechain. This is also illustrated in Figure 2 below, where cross-chain messages targeting two different sidechains are put into separate cross-chain update transactions. There are four transactions, t1 to t4, included in the mainchain, where each one emits one cross-chain message, denoted by m1 to m4. Cross-chain messages are displayed as rectangles, transactions as rectangles with rounded corners. The color of a transaction or cross-chain message is always the one of the receiving chain, except for a cross-chain update transaction whose color is the one of the sending chain. The cross-chain update transaction CCU1 containing m1 and m3 is included in sidechain 1. The cross-chain update transaction CCU2 containing m2 and m4 is included in sidechain 2. Figure 2: Cross-Chain Update Transactions Originating from Sidechains Now, we consider the case where the sending chain is a sidechain. In this case, all cross-chain messages are put into a cross-chain update transaction that will be posted on the mainchain. This includes cross-chain messages targeting the mainchain as well as cross-chain messages targeting other sidechains. When the cross-chain update transaction is included in the mainchain, the cross-chain messages are treated differently depending on their target chain. If a cross-chain message is targeting the mainchain, it is processed on the mainchain. If a cross-chain message is targeting another sidechain, say sidechain 2, then the cross-chain message is forwarded to sidechain 2. That means the cross-chain message is included in an upcoming cross-chain update transaction from the mainchain to sidechain 2. In other words, cross-chain messages from one sidechain to another sidechain are routed via the mainchain. The processing on the mainchain is very fast because the mainchain does not perform the full validation nor does it apply the cross-chain message. Both cases are depicted below in Figure 3. On sidechain 1, three transactions are included, where each one emits one cross-chain message, denoted by m1, m2, and m3. The color of a transaction or cross-chain message is always the one of the receiving chain, except for a cross-chain update transaction whose color is the one of the sending chain. All three cross-chain messages are delivered in one cross-chain update transaction, CCU1, to the mainchain, where m1 and m3 are processed, but not m2. Later on, m2 is delivered to sidechain 2 by a cross-chain update transaction, CCU2, from the mainchain to sidechain 2. This cross-chain update transaction contains an additional cross-chain message, m4, emitted by the transaction t4 included in the mainchain. Figure 3: Cross-Chain Messages We have already talked extensively about cross-chain messages without really explaining what they are. Cross-chain messages are very similar to transactions in that they both induce a state transition when included in a chain ledger. The main difference is that every cross-chain message has the additional properties and . The property allows, for example, the routing that the mainchain performs. sendingChainID receivingChainID receivingChainID Cross-chain messages can be emitted by a transaction included in the sending chain. For example, when you want to transfer some tokens from one chain to another, you submit a cross-chain token transfer transaction on the sending chain which then emits a cross-chain token transfer message. The cross-chain token transfer transaction will cause a state change on the sending chain, namely, debiting the sender account. The cross-chain tokens transfer message will cause a state change on the receiving chain, namely, crediting the receiving account. Figure 4 below shows an example in which Alice sends some LSK tokens from her account on the sending chain to Bob’s account on the receiving chain. Alice performs a cross-chain token transfer from her account on the sending chain to Bob’s account on the receiving chain. For this, she sends a cross-chain token transfer transaction, t, on the sending chain. When this transaction is included, her account on the sending chain is debited. Simultaneously, a corresponding cross-chain token transfer message, m, containing all the relevant information is emitted. This message is included in a cross-chain update transaction, CCU, which is sent to the receiving chain. When the transaction is included, Bob’s account is credited. Figure 4: Cross-chain messages are, however, not limited to token transfers. Similar to transactions, cross-chain messages have an asset property. Therefore, when building a blockchain application with the Lisk SDK, you can create custom cross-chain messages by defining the content of the asset property as needed. For example, you could create a custom cross-chain message that contains some authenticated information from an oracle chain in its asset property. This flexibility implies the general cross-chain messages capabilities mentioned in the blog post . "Introduction to Blockchain Interoperability" Example of Interoperability Usage Let’s look at an example to get a better impression of the capabilities of our interoperability solution. All the following steps described here can also be seen in Figure 4 below. Assume we have an exchange chain, a prediction market chain, and an oracle chain connected to the mainchain. Then, a user story could look like this: Assume a user has some LSK tokens on the mainchain, and they would like to bet on the prediction market chain, but this chain requires a special token for betting. Therefore the following actions would apply: The user sends some of their LSK tokens to the exchange chain via a cross-chain token transfer message. The LSK tokens are then swapped for the betting tokens. Subsequently, the betting tokens are then sent from the exchange chain to the prediction market chain via a cross-chain token transfer message. On the prediction market chain, the user bets on the winner of the Nobel Prize in Physics. After the announcement of the Nobel prize winner, the oracle chain sends the result to the prediction market chain via a custom cross-chain message. The user then receives their winnings as they made the correct guess. Example of interoperability between the Lisk mainchain and three sidechains. The steps 2), 4), and 6) are transactions performed within a single chain. The steps 1), 3), and 5) are cross-chain messages. The cross-chain messages 3) and 5) are sidechain-to-sidechain cross-chain messages which are routed via the mainchain. The cross-chain message 1) is a mainchain-to-sidechain cross-chain token transfer message. Figure 5: The Role of the Mainchain The mainchain has a key role in the Lisk ecosystem. Firstly, all sidechains need to register on the mainchain in order to interoperate with other chains. Once a sidechain is registered, the mainchain maintains the relevant information about the sidechain, such as the number of cross-chain messages sent to it and the current list of sidechain validators. As already described above, the mainchain also serves as a router for cross-chain messages from one sidechain to the other. Note again that the processing of these messages on the mainchain is very fast as these messages are only forwarded. This means for instance, that custom cross-chain messages whose full validation or application is very expensive do not affect the mainchain. The mainchain only supports the LSK token. Furthermore, since it is the native chain of the LSK token, it keeps track of the distribution of LSK tokens in the whole ecosystem. Customization of Sidechains There are almost no constraints on the applications that you can implement on a sidechain using the Lisk SDK. Next to the large flexibility regarding application logic, there are several settings regarding the blockchain protocol that can be customized, such as the validator selection mechanism. The initial version of the Lisk SDK that implements the Lisk interoperability solution will support as well as a . Delegated Proof-of-Stake Proof-of-Authority Furthermore, the block rewards can be customized: sidechain developers will be able to choose to have no block rewards at all or to have block rewards in sidechain tokens. Constants like round length, block time, and block size limit can be adapted as well. Finally, sidechain developers can choose which tokens to support. This can include tokens native to this chain but also sidechain tokens from other sidechains. Notice that to be part of the Lisk ecosystem, a sidechain will need to support the LSK token. The Role of the LSK Token The LSK token is the only token that can be transferred to every chain within the Lisk ecosystem. It will be the default token for transaction fees on sidechains, but it will be possible to configure a sidechain token for the transaction fees. As the LSK token is listed on several exchanges, it will in most cases be the initial token that a user acquires within the Lisk ecosystem. Once a user possesses some LSK tokens, they can exchange them for other sidechain tokens, e.g., on a decentralized exchange sidechain. Properties of our Interoperability Solution When designing the interoperability solution for the Lisk ecosystem, we had several goals in mind that we think are realized in our solution: First of all, it is scalable. That means, there are no bounds on the number of sidechains that can be connected to the mainchain. It is also very flexible in the sense that cross-chain update transactions can be transmitted whenever it is desired. One could transmit a cross-chain update transaction every 10 seconds or just once in a month. One can transmit them more frequently in busy times, and less frequently in quiet times. Due to this flexibility, it is also fast: If a user would like to have a cross-chain message transmitted as soon as possible they could just create and post a cross-chain update transaction that contains the cross-chain message by themselves. Creating and sending cross-chain update transactions is not restricted to validators or any other roles. Any user can do this. It is secure because certificates need to be signed by a large portion of validators from the sending chain and all cross-chain messages are authenticated by the certificates. Since the receiving chains keep track of the sending chain’s validator set, it is easy for a receiving chain to see if the signatures of a certificate were created by the legitimate validators. In fact, the receiving chain will be able to detect and reject malicious cross-chain update transactions as long as the security assumption on the sending chain holds. Nevertheless, there will even be additional security measures, including some that ensure that problems due to failed security assumptions on sidechains are confined to that chain and cannot propagate outside. Last but not least, the solution is efficient. Although all sidechain-to-sidechain cross-chain messages are routed via the mainchain, this is not really a burden for the mainchain as it only relays the messages without any expensive processing. The New Roadmap We have updated our to include these eight objectives for the Blockchain Interoperability phase. You can find the full list of objectives together with a description of each of them below: roadmap This objective encompasses the definition of cross-chain messages and cross-chain update transactions described above. This includes their validity rules, the message routing, etc. Define cross-chain messaging protocol. Here, the goal is to define the whole lifecycle of a sidechain, starting from its registration on the mainchain up to its potential termination including token recovery from terminated chains. Define sidechain registration and lifecycle. As part of this objective, we plan to introduce a state root that allows us to cryptographically authenticate the whole state of a chain with a single hash, using inclusion proofs. Define state model and state root. We plan to define some standards regarding fungible tokens and non-fungible tokens. These standards should make it straightforward to create sidechain tokens on sidechains. This also includes the corresponding cross-chain token transfer messages described in the example above. Introduce token standards for the Lisk ecosystem. The goal is to make the Lisk-BFT protocol more flexible. For example, it should be allowed to set different validator weights for finalizing blocks and allowing these finality weights to change over time. Different weights may, in particular, be desired for sidechains that use the Proof-of-Authority mechanism. Moreover, Lisk-BFT should generate certificates that can be used in cross-chain update transactions to authenticate cross-chain messages and validator changes. Update Lisk-BFT for interoperability. The format of block headers and genesis blocks needs to be updated to account for the changes listed above. Update block header format. This objective aims at specifying the new Proof-of-Authority validator selection mechanism. Introduce alternative validator selection mechanism for sidechains. We plan some enhancements for the signatures used in Lisk. The most important one is to introduce compact aggregate multisignatures, which are highly beneficial to limit the size of the certificates contained in cross-chain update transactions. Enhance signature scheme. Conclusion The Lisk interoperability solution is based on the paradigm of cross-chain certification. Any kind of information can be exchanged between chains using general cross-chain messages. The Lisk mainchain plays the key role in the whole ecosystem since all cross-chain messages between sidechains are routed via the mainchain. Sidechains can further be customized, not just regarding the application logic, but also with regard to the general blockchain logic, such as the consensus algorithm. The LSK token can be moved to any chain, and it will be the default token for transaction fees in the ecosystem. Moreover, creating sidechain tokens on a sidechain and transferring them to other chains will be straightforward using the new token standards.

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