Hello PUBLISH0X community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
Today we are going to introduce a new cryptocurrency: Litentry (LIT)!
To understand Litentry, you must appreciate the problem to be solved. In short, it all boils down to decentralized identity management.
How do you attach unique identities to certain users on a decentralized blockchain?
How do you know that a particular wallet address with which we are dealing is controlled by a unique individual?
Without attaching an identity to an address, the potential that DeFi (Decentralized Finance) can achieve has certain limitations.
What is Litentry?
Litentry is a project that is developing a platform that can aggregate and manage decentralized identifiers or DIDs in many different blockchains. Therefore, basically, it is a platform for projects and agreements for managing and using DIDs as input for new and exciting functions.
More importantly though. Litentry is trying to build a protocol that will allow these DIDs to be used privately and securely. Litentry performs cross-chain transactions, with the goal of becoming Parachain of the Polkadot network. I have already talked about Polkadot in this article. It handles service requests from Litentry users, who claim it is a security-centric project, through DID (Decentralized Identifier).
The demand for integrated identities data is expected to largely come from decentralized applications that are fueled by personal identity data. Besides interoperability, the identifier plays a critical role in scenarios where the server requests the client for identity data, such as KYC, credit
scores, or credentials, in an attempt to provide services. In the past and present, many applications require users to provide their information from third-party applications or directly track user activities to obtain the information they need. This inevitably compromises users due to privacy invasion and personal data breach.
How it Works?
Let’s take a look at the user side technology, and the primary piece of technology here is the Litentry mobile app. The app will be integrated with the Litentry Network and will allow users to participate in the governance process and access Identity-Based Services. The app could also be linked to other networks and even some traditional identity verification systems. They will also be able to manage LIT incentives here and also use it as a crypto wallet. The app will include the Litentry authenticator. This is the mobile identity and data hub for the Web 3.0 ecosystem. You can actually get a sense of how this looks over here on the initial proposal of the app over in their docs.
On a more technical level, the Litentry runtime protocol will be able to link an account across all other chains using that unique identifier. The users on Litentry can sign transactions attached to their unique identity with a private key. The benefits of this are that the user data can be shared but privately. Nothing about the user themselves apart from the unique identifier is actually shared. This identifier can also be linked to unchain crypto assets to verify information relevant for credit delegation etc.
If you want to find out more details about this cryptocurrency, I suggest you to follow me on Publish0x to receive the notification on the next article, which will be released next Sunday, dedicated to LIT!
Next Sunday I’ll talk about LIT tokenomics, LIT token, the potential of this project and something more!
