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Lisk vs Stellar

January 12, 2022

Lisk vs Stellar: A Battle of the Blockchains

Blockchain technology is taking over the world by storm, and it's not slowing down anytime soon. With so many options in the market, two significant blockchain technologies, Lisk and Stellar, are often compared. This comparison will enable you to understand the strengths and weaknesses of both technologies, leaving you with a better-informed decision for your needs.

Background Information

Lisk and Stellar are both open-source blockchain technologies designed to optimize decentralized applications development.

Lisk was launched in 2016, making it one of the older blockchain technologies in the market. Lisk separates its architecture into different side chains to improve its scalability.

Stellar, on the other hand, was founded in 2014 by Jed McCaleb, one of the co-founders of Ripple. It's designed to process cross-border payments and support token issuance of traditional fiat currencies.

Both technologies' goal is to improve blockchain technology's scalability, security, and integration with real-life applications.

Transactions Per Second (TPS)

Scalability is crucial in blockchain technology, and transactions per second metric measures the capability to perform transactions within the blockchain.

Lisk can process 10-20 transactions per second with its delegated proof-of-stake consensus mechanism. Stellar, on the other hand, boasts of 4-5 seconds per block time and can process up to 3,000 transactions per second.

Smart Contract Capabilities

Smart contracts refer to self-executing transactions with the terms of its agreement directly written into code. Developers use them to create more complex applications that can process automated actions through them.

Lisk is compatible with Javascript, a widely used programming language, giving developers an easier integration with existing software. It supports sidechains, which enable developers to create their decentralized apps.

Stellar's support for smart contracts is not as advanced as Lisk's but supports its own unique scripting language called Stellar Smart Contracts (SSC).

Consensus Mechanism

Consensus mechanisms determine how the nodes on the blockchain agree to accept new transactions into the network. A secure consensus mechanism is vital for ensuring security and transparency in blockchain technology.

Lisk uses delegated proof-of-stake (DPoS) as its consensus mechanism. DPoS enables aspects such as the ability to vote for validators, resulting in faster transaction confirmations.

Stellar uses the Stellar Consensus Protocol (SCP), which is a federated consensus protocol that results in faster transaction confirmations with less energy consumption.

Market Capitalisation

Market capitalisation is the total value of a company's outstanding shares of stock. It is calculated by multiplying the total number of shares outstanding by the current stock price.

Lisk's market capitalization as of January 2022 was over $450 million, with a circulating supply of over 150 million LSK tokens.

Stellar's market capitalization as of January 2022 was over $10 billion, with a circulating supply of over 23 billion XLM tokens.

Conclusion

Lisk and Stellar are both excellent blockchain technologies playing important roles in the industry. Lisk, with its smart contract capabilities and compatibility with Javascript, is an excellent choice for developers who prefer known programming languages. On the other hand, Stellar with its efficient consensus mechanism and scalability, is best suited for cross-border payments and token issuance.

It is essential to understand your needs before choosing one over the other, but we hope to have given you an informed comparison between the two in this article.

References

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