LUKSO: Blockchain for digital lifestyle and economy

Prior to 2009, some development was done using cryptography. Stuart Haber and W. Scott Stornetta had already seen a new technology that we now know as blockchain. Their work started in 1991 and in 1992 they incorporated Merkle Trees into their system to increase productivity and store more data in a single block.

Sixteen years later, in 2009, Satoshi gave the world the first use case for blockchain technology – Bitcoin was born. Though it wasn’t really globally recognized as a good development as the world had yet to realize its full capability. That started to change when 10,000 of them were traded for a pizza. And then the entry of Ethereum opened up a new dimension of blockchain technology.

With Bitcoin, the blockchain was primarily for financial purposes, while Ethereum showed blockchain’s ability to be used for more applications than just as a basis for producing digital currency. Today there are Solana, Cardano, Harmony, Ultra, BSC on which there are so many everyday projects.

What is Lukso?

LUKSO is a blockchain built on Ethereum and aimed at breaking the barrier of entry to using blockchain in everyday life situations. The chain’s goal is to go beyond what Ethereum has done by driving wider adoption of blockchain utilities.

Former Ethereum developer Fabian Vogelsteller started the project in 2017, and today it has expanded to a wider reach of team members around the world. The Lukso network has been focusing on the fashion industry, however, Lukso is not limited to fashion and development.

Features of Lukso

As mentioned earlier, Lukso has paid more attention to the fashion industry. However, its applications will extend beyond the fashion ecosystem. Lukso wants to create digital solutions on blockchain that will affect physical and digital consumer goods by providing robust solutions on identity and more.

Proof of work to proof of authority to delegated proof of stake

Since Ethereum uses the Proof of Work protocol, Lukso was initially launched using the same protocol. However, the testnet has been moved to PoA.network176, which is an EVM-based proof-of-authority (PoA) network. This will not be the final basis for the Lukso blockchain as plans are in place for the mainnet to launch on delegated proof-of-stake (dPoS) governance around a PoA algorithm, called Honeybadger BFT177.

Lukso’s four engines

The network is designed to work with LUKSO Orchestrator, Pandora runtime (a smart contract execution engine, based on go-ethereum, to work in concert with the LUKSO orchestrator), validating customer as good as State-of-the-art consensus engine (a Casper consensus engine based on Prysm). All of these are intended to help achieve rapid interoperability between networks while maintaining trust between connected systems.

Reversible ICO system

This is the first time a reversible ICO has been created where investors are allowed to return reserved tokens within a certain time frame. For example, if an investor gets 4,000,000 tokens to reserve for 6 months, the person can return it to 5 months and be rewarded in ETH.

BaFin, the highest regulatory authority in Germany, has verified this model and approved it under German safety laws. And with this, investors are assured of greater security for their assets.

EVM Properties

The Lukso blockchain has most of the functionality present in the systems operated by EVM. Thus, it can initiate smart contracts, DAOs can be built on it, and dApps can also be developed on the network. It is decentralized, has a high level of security and of course uses gas fees for operations.

How the Lukso network works

The Lukso network is based on three fundamental bases. They are identification, virtualizationand tokenization.

The Lukso blockchain is designed to provide strong digital identification or data governance in the blockchain ecosystem. “LUKSO allows all participants to create their personal address on its network and use it as a permanent identifier in the digital world”, according to the white paper.

“The LUKSO blockchain serves as a public database accessible and verifiable by all. This property makes it perfect for solving the biggest challenge of public identification: where to find relevant information about someone or something that lets us know for sure that the source of a claim is actually correct and credible. »

With this in mind, digital identities become: under the full control of their owner; fully interoperable; and can be developed for creators, users, and digital and phygital collectibles.

Virtualization is intended to fuel the creation of digital experiences. The focus on the fashion industry is so prominent for the Lukso blockchain because it believes that “a decisive element of the digital transformation of lifestyle consumption is the continuous integration of all its physical and digital aspects”, says the white paper.

Over time, this is going to go beyond fashion and into the world of other industries so that there can be a smooth transition between different realities in any aspect of life. And it will combine “Phygital” collectibles (physical objects with unique digital identities) and digital collectibles. So that Lukso can overlap with the emerging world of VR.

With Tokenization, digital tokens created by brands as well as individuals can become the connecting factor in consumer communities. Today, tokens are a new form of signaling interest, status, membership, and limitless utilities where users new and old can participate in an ecosystem, be part of a vision, and benefit from huge economic benefits.

Lukso wants to help brands as well as creators, individuals to symbolize the value they have. This will boost blockchain technologies since tokens are more or less directed use cases of technology that has instant value attached to it. From fashion to government to entertainment, it will happen even more and the Lukso team wants to speed things up.

“LUKSO’s goal is to create a whole new set of applications focusing on creativity, fashion, games as well as life cases”, says Mehardeep Singh, author at TechStory. “As a result, the team is actively communicating with fashion brands and would also be in contact with many English Premier League football clubs.”

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Lukso Network Tokenomics

$LYXe is the native network of the ecosystem. The initial total supply of 100,000,000 LYX will be incorporated into the network’s genesis block and will be the source of incentives for validators.

The token serves as a utility token as well as governance so that for any transaction done in the ecosystem (like moving tokens or running smart contracts) gas fees are a pain in LYX and it can also be staked to receive rewards. Other functions of the LYX include the execution of smart contracts.

According to the white paper, “LYX will function as a unit of account and a store of value.” With this, the value of the network is controlled by how the token is used, thus serving as indices for the economic value of the entire ecosystem. Check out LYX’s CoinMarketCap tab to see its live metrics.

Lukso Network Challenges and Roadmap

Cardano, Solana, Algorand and Ultra are some of Lukso’s top competitors in the ecosystem. They are fast and work with EVM. Outside of this list, other platforms are popping up daily to fill the roles and gaps that were created by previous blockchains like Bitcoin and Ethereum.

Another challenge with the Lukso platform is the time it will take to migrate to Ethereum 2.0 as it is supposed to work on this upgrade and integrates with Casper. Ethereum lovers are still waiting for the upgrade as well as network users who rely on this upgrade.

Lukso’s future is beyond the fashion world. Yes, it was created to bring blockchain utilities to the fashion world, this use case will transcend this industry into other industries as the platform grows. It will also leave room for other projects to be built on it, just like it is done on other smart contract-enabled blockchains.

Team and partners behind the Lukso network

Fabian Vogelsteller started the whole project. He was a developer working on Ethereum and in 2018 launched Lukso. He has been a blockchain leader, innovator, and thought leader since 2013 and has delivered projects such as the Mist browser, web3.js, the Ethereum wallet, and the ERC-20 standard, which opened up the ICO global fundraising rush. Fabian is co-founder (with his wife) and chief architect of the Lukso network.

Marjorie Hernandez is co-founder and CEO of the Lukso Network. She is an architect, strategist and innovation consultant who has worked with Ernst & Young to create a lab and help implement Ethereum services in global organizations. Marjorie is currently co-founder and product manager at THE DEMATERIALISED.

Robert David has been an experienced UX/UI designer and developer since 1998. In 2012, he entered the blockchain industry, focusing on blockchain architecture and integration. Before coming to Lukso, where he works as a software engineer, he founded five companies in several different industries and worked on projects such as Datawallet and THORCHAIN.

Check here to see the advisory team behind the project.

Conclusion

Lukso is developing a global blockchain network and ecosystem to create cultural currencies and digital certificates that can accelerate blockchain adoption. It is implemented in the fashion industry and, if successful, can also be integrated into other sectors.

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