Lisk’s Transition to Layer 2

Introduction

Since its inception, Lisk has been a pioneering force in the blockchain space, offering a unique platform for developers to build and deploy decentralized applications (dApps) and smart contracts using JavaScript. Built on the Ethereum Virtual Machine (EVM), Lisk's Layer 1 (L1) blockchain aimed to leverage the familiarity of JavaScript and the robust ecosystem of Ethereum. However, as the blockchain industry continues to evolve, Lisk recognizes the need to adapt and address the challenges of scalability and accessibility. In a bold move, Lisk has announced its transition to a Layer 2 (L2) solution, integrating with the Ethereum ecosystem and joining the collective efforts of the Superchain.

The Migration to Lisk L2: A Strategic Shift

Lisk's decision to migrate to L2 is a strategic move that aligns with its broader mission of democratizing blockchain accessibility and fostering mass adoption. By integrating with Ethereum and leveraging the Optimism (OP) Stack, Lisk aims to provide developers with a familiar and web2-like experience while benefiting from the proven tooling and infrastructure of the Ethereum ecosystem.

One of the key components of this transition is Lisk's partnership with Gelato, a leading provider of Rollup as a Service (RaaS) solutions. Gelato's platform will power Lisk's L2 solution, enabling developers to build and deploy applications with enhanced scalability, lower transaction costs, and improved user experiences.

The Sepolia Testnet: A Glimpse into the Future

In preparation for the mainnet launch, Lisk has introduced the Sepolia Testnet, a collaborative effort with Gelato. Launched on February 27th, 2024, the Sepolia Testnet serves as a crucial testing ground for developers, featuring a range of integrations and tools designed to mirror the future L2 Mainnet as closely as possible.

Some of the key features of the Sepolia Testnet include:

- Superchain Faucet: Allowing developers to acquire test tokens for experimentation.

- Lisk Bridge: An initial bridge for transferring assets between the Lisk L2 and other chains.

- BlockScout Explorer: Providing a user-friendly interface for exploring and analyzing the Lisk L2 blockchain.

- Redstone Oracle Price Feeds: Enabling access to real-world data and price information within dApps.

- Gelato Suite: Offering services like Account Abstraction and Verifiable Random Functions (VRF) for enhanced security and functionality.

The Sepolia Testnet represents a significant milestone in Lisk's transition, allowing developers to familiarize themselves with the new ecosystem and prepare their applications for the upcoming mainnet launch.

The Superchain and L2 Benefits

Superchain Integration

Lisk's migration to L2 is not merely a technological shift but also a strategic move towards the Superchain ecosystem. The Superchain is a collective of blockchain networks working together to overcome the challenges of fragmentation and scalability within the Ethereum ecosystem. By joining the Superchain, Lisk aims to leverage the collective efforts of hundreds of teams contributing to the OP ecosystem, benefiting from Optimism's Retroactive Public Goods Funding (RetroPGF) mechanism. This collaboration aligns with Lisk's vision of building more accessible infrastructure, tooling, and end-user experiences for Web3, ultimately aiming to reach true adoption and attract the next billion users.

Advantages of the L2 Model

The transition to L2 brings several advantages for Lisk and its ecosystem:

1. Inherited Security: As an L2 solution built on Ethereum, Lisk will inherit the robust security guarantees of the Ethereum mainnet, ensuring the safety and trust of projects and developers building on the Lisk network.

2. Ethereum Roadmap Alignment: By integrating with the Ethereum ecosystem, Lisk will benefit from the latest improvements and advancements on the Ethereum roadmap, such as cheaper transactions with Proto-Danksharding, account abstraction, and other cutting-edge features.

3. Development Resources: Developers will have access to a vast array of libraries, tools, and resources focused on the Ethereum Virtual Machine (EVM), facilitating the deployment of popular EVM-based applications on the Lisk network.

4. Liquidity and Token Access: The migration of the LSK token to an ERC-20 token on the Ethereum mainnet will enhance its utility across various decentralized applications (dApps) and decentralized finance (DeFi) protocols within the Ethereum ecosystem. This move will make it easier for centralized exchanges and custodians to support LSK, while also providing developers and end-users with access to thousands of other ERC-20 tokens and stablecoins.

Token Allocations and Community Benefits

As part of the migration process, Lisk plans to introduce new LSK token allocations to support projects, developers, and initiatives that contribute to Lisk's long-term growth and success. This includes:

-Airdrops: Ensuring a growing community and active ecosystem of dApps and users.

- Market Making: Promoting healthy liquidity for the LSK token.

- Venture Capital Investments: Securing strategic leverage and access to a wider network of partners and resources.

Additionally, Lisk will prioritize integrations with top dApps to enhance the offerings and value proposition of the Lisk ecosystem.

The Future of Lisk L1 and LSK Token

While Lisk is transitioning to an L2 solution, its original L1 blockchain will not be abandoned. The Lisk L1 chain will be continued and maintained by the Klayr team, a dedicated group of developers and contributors committed to preserving and advancing the original Lisk ecosystem.

The Klayr team aims to provide a seamless experience for existing Lisk L1 users and projects, ensuring continuity and support for the established Lisk L1 community. This decision allows for a gradual transition, giving developers and users the flexibility to migrate to the new Lisk L2 solution at their own pace, while still having the option to continue leveraging the L1 chain.

With the transition to Lisk L2, the future of Lisk L1 and its token, LSK, has evolved. The LSK token has undergone a significant transformation, with a snapshot height announced at block height 24,823,618 (estimated to occur on May 21st, 2024, around 8:00 AM CET). LSK token holders will receive a 1:1 token swap, and the token supply reduced from infinite to fixed.

Conclusion

Lisk's transition from its L1 blockchain to an L2 solution built on Ethereum and integrated with the Superchain ecosystem marks a significant milestone in the blockchain industry. This strategic move demonstrates Lisk's commitment to innovation, scalability, and accessibility, positioning itself as a key player in the future of decentralized applications and blockchain technology.

By leveraging the strengths of the Ethereum ecosystem and the collective efforts of the Superchain, Lisk aims to provide developers with a robust platform for building and deploying dApps, while also offering end-users enhanced experiences and access to a wide range of tokens and services.

As the blockchain space continues to evolve, Lisk's ability to adapt, innovate, and collaborate will be crucial in shaping the future of decentralized technologies and fostering widespread adoption. The journey ahead is filled with both opportunities and challenges, but Lisk's vision and determination to democratize blockchain accessibility remain unwavering.