Lisk Will Switch to Ethereum in 2024 – Layer-1 Will Become Layer-2

Lisk (LSK) has existed with its own blockchain since 2016. The team has now announced that it will establish the network as Layer 2 in the Ethereum (ETH) ecosystem in 2024. Lisk uses technology from Optimism (OP).

At the end of 2017, LSK was still one of the 20 most important cryptocurrencies in the world and had a market capitalization of almost $1 billion. 

The project was a pioneer in DApps and scored points with the fact that developers at Lisk could work with JavaScript. But six years later, Lisk’s market cap has shrunk to less than $200 million and LSK finds itself relegated to around 250 on the altcoin charts. In this situation, the team made a radical decision and announced in a blog post  that they would move Lisk to the Ethereum ecosystem as Layer 2 in 2024.

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This means Lisk will give up its independence

They say they first toyed with the idea of  ​​making Lisk compatible with Ethereum (ETH) . The goal was clear: the majority of successful DApps can be found in the Ethereum ecosystem and the desired liquidity is also available there. Then the idea came up in the internal discussions to have Lisk moved completely to Ethereum as Layer 2.

No sooner said than done: now Lisk will take the big step. The move should be prepared with a testnet as early as the first quarter of 2024, and developers will be provided with a new Lisk testnet in the second quarter. The day will then be targeted when Lisk switches to Ethereum. 

According to the information, the old Lisk will continue to be operated by the Moosty community team and will receive technological and financial support from the Lisk Foundation for two years.

In order to technologically implement the strategic turnaround at Lisk, modules from Optimism (OP) are used.  The Coinbase Layer-2 Base recently successfully implemented a similar approach , but without its own cryptocurrency. At Lisk, LSK becomes an ERC-20 token when it is located on Ethereum.

Conclusion: Lisk goes Ethereum – solution for other altcoins too?

Lisk hopes to make a comeback in the Ethereum ecosystem in the future. It remains to be seen whether developers will play along and get used to adapting their DApps to Ethereum. Lisk’s path is also interesting for Optimism, where the offer of simply setting up Layer-2 for Ethereum seems to be working. 

After Base, Lisk, a community with a long history, is now joining. In the medium term, Optimism wants to establish a superchain in which various Layer-2s are linked. So it could be possible that Lisk will not be the last altcoin to abandon the concept of its own blockchain and follow the money to Ethereum.

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(Featured image by DrawKit Illustrations via Unsplash)

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