Home » Learn how to earn digital currency with Lisk’s delegated participation protocol
GUIDES AND TUTORIALS

Learn how to earn digital currency with Lisk’s delegated participation protocol

lisk principal
lisk principal
Key facts:
  • Each Lisk digital currency holder will be able to vote for the 101 delegates of their choice.

  • By having LSK in our portfolio, we will be able to make a profit by giving our votes to delegates.

Lisk is one of the digital currencies that proposes to revolutionize the world of decentralized networks through the implementation of a protocol for the confirmation of blocks called Proof of Delegated Participation (DPOs). With this protocol, 101 democratically elected delegates are responsible for confirming transactions.

These delegates are chosen by the community. Each Lisk digital currency holder will be able to vote for the 101 delegates of their choice using your wallet. The waiting list of delegates is extensive and currently covers almost 1600 waiting to be chosen to join the group of 101.

Each delegate for whom we vote, in general, to maintain our vote, will give part of their profits from the islands of the confirmed to their voters. However, this does not always happen, as payment is only the decision of the delegate.

That is why, by having LSK in our portfolio, we will be able to make a profit by giving our votes to the delegates that the community has confirmed that it shares its profits. You may be wondering how to know if delegates are paying? Don’t worry, in this tutorial you will learn how to identify which delegates share their earnings. Let’s get started.

Lisk Hub installation and first steps

The first thing we need is to download and install the Lisk portfolio to manage our cryptocurrencies. This wallet can be obtained on the main portal of Lisk Hub. The team of developers of this blockchain made an update to its platform earlier this year.

client_wallet
Main portal to download the Lisk Hub client. Source: Lisk.io.

Here we will select Download Lisk Hub for Windows. In case we do not use another operating system we will select the option All releases on github, Which appears at the bottom. Now we just have to wait for it to download and run.

What we will see when we first open our Lisk Hub portfolio. Source: Lisk Hub.

This will be the first screen we will encounter. The first thing we will do is create a new Lisk portfolio. To do this, select the option on the right Create Lisk ID. In case we already have 1, we just need to add the recovery phrase on the left side.

coin_entropy
We need to move the mouse to create the necessary entropy that generates our portfolio direction. Source: Lisk Hub.

To begin, we will be asked to move the mouse to generate entropy, which will allow the creation of our public and private keys. It must be remembered that this process is done entirely locally, So both the direction of our portfolio and that of our recovery phrases (which we will generate later) are not stored anywhere else. Therefore we need to store them carefully.

After generating our address it is time to get our recovery phrases.

These phrases are unique, and are the only way to support our funds. Source: Lisk Hub.

To continue alone we must select Get a passphrase and subsequently I Understand, Where we indicated that we understand that we are solely responsible for the security of these phrases, and Lisk is not responsible for their storage and retrieval.

Swipe to reveal recovery phrases. Source: Lisk Hub.

We just need to slide to reveal our safety phrases. The recommended is copy this recovery phrase onto a piece of paper and save it in a safe place. This way we avoid keeping our phrase in a digital storage medium vulnerable to hacking. Once copied we selected Yes! It’s safe, assuring on the page that we already have our sentence. Subsequently, we will confirm the missing words from our recovery phrase and ready, we have just created our portfolio.

Portfolio ready to work. Source: Lisk Hub.

We have already created our portfolio. The address we see in the image is our public address. To get started we just have to click on Get to your dashboard.

Lisk offers a mini tour to quickly learn about the features of the portfolio. Source: Lisk Hub.

At the beginning, our wallet will offer us a small tour to see the features of this wallet.

At the top we will find our public address and the balance sheet in LSK that we own. In this section we can also access the different ones Lisk ID of the portfolio. This wallet can handle many addresses, To create them we just select the avatar of our address and perform the same creation process.

en dashboard we will find the related the current price of a Lisk in BTC, the activities of the portfolios in the application and the menu to make Lisk transfers.

wallet_portfolio

en Wallet there are options regarding our portfolio with respect to the Lisk ID we have selected.

explorer_blockchain

This section will help us to explore the Lisk blockchain directly from our portfolio. Just enter an address or transaction ID in the search engine that is there to view it.

This section at the time of this tutorial is still under development. We can also notice that it is still in beta in the top Lisk icon.

This last section is for the configuration of our application and is where we will start. As you may recall, at the beginning of the tutorial we mentioned that we could vote for the delegates, but if they have been set well the option does not appear anywhere. For this to appear in our menu we must go to settings and activate the option Delegates features.

votacion_voto
The delegate voting option is disabled by default. Source: Lisk Hub.

Here we will slide to activate, and we will see how the option of will appear in the side menu Delegates.

Section for voting for delegates. Source: Lisk Hub.

This is where we will be able to vote for the delegates, but we will be back here in a moment, we first need funds to be able to vote because for every 33 votes we will need 1 LSK.

To receive funds we just need to share our public address which is in the upper right corner. In case we want to see the QR code or select a specific amount, we have to select Wallet in the side menu and then request. Now we can only wait for the transaction to be confirmed. In Lisk, transactions have a confirmation average of 10 seconds and in 2 minutes become immutable.

wallet_cartera
We can see the balance in both Wallet as in the upper right corner. Source: Lisk Hub.

Once we have received the funds we can view both in givesshboard as in the section Wallet. Once we have the funds in our portfolio it is time to use them in the section on delegate voting.

Voting by Delegates

To get started, let’s head to the section Delegates in the side menu.

In the left box that we see in the image you will find the votes that we have selected from the right list. As you can see, we can make 33 votes per block, With a total of 101 votes divided into 4 parts. Each vote has a commission of 1 Lisk.

On the right we will have the list of active and inactive delegates, differentiated by productivity. This means that, if we lower the list and get delegate number 102, we will be able to see that on the productivity column it will go from 99% to 0%; only the first 101 delegates are active.

In the same way, even if the delegates are inactive we can vote for them, As each delegate is democratically voted. If a delegate on the waiting list gains popularity, he or she can access the 101 group.

We already know a little bit about how to vote, but we need to see what productivity the delegate I’m voting for has. Votes are usually cast on the 101 active delegates, as they are the ones who share their earnings, but this may not always be the case. There are specialized portals like the Lisk Delegate Monitor where we can see who is the last delegate who approved a blog, the delegate with the best productivity, the one who pays the best, if he is online, and so on.

Web portal where we can see details of the registered delegates. Source: explorer.lisk.io.

As you can see, all the registered delegates will be sorted here, just like we saw them in our portfolio, but with a little more information. On the other hand, we can take the time to review forums like Reddit where we can see information about each of them.

Before voting we need to consider something about the gains. Beyond whether or not delegates pay, delegates ’payments must be divided among all their voters. For example, the first on the list at the time of writing this tutorial, has 11908 voters, so you have to divide the payments between all of them. Therefore, we cannot expect delegates ’payments to make us millionaires.

Already at this point, once elected the delegates for whom to vote we can begin. Let’s go to the section of Delegates and we will choose, to make the first block of 33 votes, 33 delegates from the list.

List of delegates elected to vote. Source: Lisk Hub.

Having already chosen the first batch of 33 delegates, we will click on Next.

In this step we confirm the transaction. As you will see, each voting block will cost 1 LSK, Although we vote for 1 or 33 delegates at a time.

Voting list. Source: Lisk Hub.

For the votes to be confirmed, we just have to wait for the transaction to be confirmed in the Lisk blockchain and ready, we will have made the votes to the delegates. We must remember that we can make a total of 101 votes, for different delegates, divided into 4 blocks of 33, 33, 33 and 2.

In addition to voting for others, we we can register as delegates. Therefore, we will go back to the section of Delegates and, on the list of delegates, we will see the option Become a delegate.

Registering as a delegate costs LSK 25. On top of that we need to have enough community support to be able to join the group of 101. Source: Lisk Hub.

To register as a delegate, we only need to choose a unique name on the network and pay a commission of 25 LSK. Once registered, we must obtain community approval through voting to be able to enter the 101 group, where we can begin to confirm transactions.

Withdrawal of funds

Withdrawal of funds on the Lisk platform is very simple. To get started, let’s head to the section Wallet. Once there, in the section Transfer we can place the address and the amount to send. Commissions to be sent are priced at 0.1 LSK per transaction.

Explore transactions in the Lisk Hub blockchain

One of the peculiarities of Lisk Hub compared to other portfolios is the fact that it integrates a blockchain browser, which is very useful when verifying transactions or portfolios. To open the browser, let’s select Explorer in the side menu.

Own explorer of the Lisk Hub portfolio. Source: Lisk Hub.

In the search engine found in this section we can place a Lisk address or the identifier of a transaction.

Data from a searched portfolio in the Lisk blockchain explorer. Source: Lisk Hub.

What we see in the image above is a search of our portfolio. In the search we integrate a button, where we can send funds directly to this address.

You can watch the video tutorial of this guide on our YouTube channel.

Featured image of Lisk.

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