Lisk decided to utilize the Ethereum network after learning that more than 90% of user transaction fees on the L1 platform were Ethereum-based.
LISK, an open source blockchain network and platform for decentralized applications (dApps), announced its decision to join the Ethereum ecosystem as a layer 2 (L2) platform. According to the official blog post, Lisk is building its upcoming ecosystem based on Gelato’s Rollup and powering it with Optimism’s OP stack.
Why Lisk is integrating Ethereum
The move grew out of research conducted earlier this year as it attempted to expand its product roadmap. This study included deep insights into L1 and L2 environments. Lisk shared a research report showing that more than 90% of the transaction fees users spend on the L1 chain are captured within the Ethereum network. The report is as follows:
“This realization led our leadership team to begin actively investigating solutions that leverage Ethereum’s superior market share to upgrade Lisk’s ecosystem in the second quarter of this year.”
The announcement states that the Lisk Foundation will take action next year. Explaining this decision, the blog post stated that Lisk will collaborate with Base and Optimism as an initial member of the Optimism superchain. Superchain allows Lisk to join a chain consortium that shares a commitment to openness and decentralization while supporting Optimism’s Chain Law. Optimism, Lisk, Base and other contributors hope to build a better infrastructure to attract “the next billion users” in Web3.
Lisk said it will deploy the L2 testnet in the first quarter of 2024, with a developer launch in the second quarter. Lisk plans to launch its mainnet at some point in the future. This move has several benefits, including developer fees being 90% lower than on the Ethereum mainnet. Additionally, Lisk L2 enjoys the same security as Ethereum and is also compatible with the Ethereum Virtual Machine (EVM), allowing it to benefit from network improvements.
Benefits of Moving Ethereum
EVM compatibility will provide Lisk developers with a wider range of tools for building dApps. Existing EVM-based applications are also easily deployed on Lisk. Additionally, Lisk developers and users will have access to much higher liquidity across thousands of tokens. The move also allows users to send and receive ERC-20 tokens to and from Lisk’s L2.
In addition to specific benefits, Lisk highlights the benefits of using the OP stack and joining a superchain. One of them is to address the fragmentation created by L1 and isolated L2 chains. Users can easily interact with any application on Optimism, Lisk, Base or any other L2 platform part of Superchain. There is also the benefit of joining an ecosystem with multiple other chains working towards a common goal.
As for what happens with Lisk L1, the project hopes to turn it into a community-driven project. The plan is for the Lisk Community Team (Moosty) to take over and operate under a new brand and name. Over the next two years, the Risk Foundation will provide financial and technical support to L1.
“We want to emphasize that we will continue to maintain Lisk L1 and all products until the LSK token is migrated to Ethereum as an ERC-20 token and the Moosty team takes over Lisk L1 development,” the team wrote.
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