Litentry

Litentry (LIT) is a decentralized identity aggregator built on the Substrate framework, designed to enable cross-chain aggregated identities. It aims to facilitate the linking of user identities across multiple networks, leveraging the Polkadot ecosystem for interoperability. The project focuses on privacy protection and the secure management of digital identities, offering tools like IdentityHub for users and projects to manage and authenticate digital identities efficiently.

• Total Supply:

• 100,000,000 LIT (as per the general standard for Substrate-based projects, but specific numbers should be verified as they can change).

• Circulating Supply:

• Approximately 39,619,383 LIT.

• Staking:

• LIT holders can stake their tokens as part of the network’s Delegated Proof of Stake (DPOS) consensus mechanism.

• Utility:

• Fees for credit/reputation computation, rewards for indexed identity databases, staking for identity registrar roles, and deposits in DeFi applications.

As of today #{today’s date}, the price of Litentry is ₹65.77 INR or 0.711 USD, with a 24-hour trading volume of 15704760.29 USD. The market capitalization for Litentry is 39775451.77USD. The circulating supply is 55730861.63 Litentry, with the total supply also being 100000000 Litentry.

Pros:

• Privacy Focus:

• Strong emphasis on user privacy and data protection.

• Cross-Chain Functionality:

• Facilitates interoperability and identity linkage across different blockchain networks.

• Staking Rewards:

• Offers incentives for token holders to participate in network security and governance.

• Substrate Framework:

• Benefits from the scalability, interoperability, and upgradeability of the Substrate framework and Polkadot ecosystem.

• Decentralized Identity Management:

• Addresses the need for a unified, secure digital identity across the web.

Cons:

• Complexity:

• The concept of decentralized identity can be complex for new users.

• Adoption Rate:

• Success heavily depends on widespread adoption by users and integration by other projects.

• Regulatory Uncertainty:

• Potential regulatory challenges related to privacy and digital identity management.

• Competition:

• Faces competition from other identity management and aggregation projects.

• Technical Risks:

• Like all blockchain projects, it’s subject to risks associated with smart contract vulnerabilities and network security.

• Growing Need for Digital Identity Solutions:

• Increasing online presence and transactions necessitate robust digital identity solutions.

• Innovative Use of Blockchain for Privacy:

• Offers a novel approach to managing digital identities with a focus on user privacy and security.

• Ecosystem Growth:

• Part of the expanding Polkadot ecosystem, which is gaining traction in the blockchain space.

• Potential for Adoption:

• If successful, the platform could become a standard for cross-chain identity verification and management.

• Staking Incentives:

• Provides an opportunity for passive income through staking mechanisms.

• Decentralized Identity Aggregation:

• Unique focus on aggregating and managing identities across multiple blockchain networks.

• Privacy and Security:

• Leverages TEE (Trusted Execution Environment) for enhanced data protection.

• Polkadot Ecosystem Integration:

• Benefits from interoperability and shared security within the Polkadot network.

Litentry addresses the fragmentation of digital identities across various platforms by providing a unified, blockchain-based solution for secure and efficient identity management and verification. It aims to enhance privacy, reduce fraud, and streamline user experiences across the digital landscape.

The founder of the Litentry (LIT) token is Hanwen Cheng.

Litentry (LIT) did not conduct a public ICO. Instead, the distribution of tokens to the community took place through Binance Launchpool, and there were also strategic and private funding rounds. The token sale price during the strategic round was $0.25; during the seed funding round, the price was $0.18.

• Market Volatility:

• Cryptocurrency prices are highly volatile.

• Regulatory Risks:

• Changes in regulations could impact the project’s operations or token utility.

• Adoption Challenges:

• The platform’s success depends on user and project adoption.

• Technical Risks:

• Potential vulnerabilities in smart contracts or network security.

• Competition:

• Risk of being outperformed by competing projects in the identity management space.

The Litentry whitepaper outlines the framework for a decentralized identity aggregation protocol that aims to create a user-centric internet using blockchain technology. The protocol is designed to address the current issues of data control and privacy by allowing users to manage their digital identities across various services and platforms without compromising their data sovereignty.

Key Concepts and Features:

• User-Centric Internet:

• Litentry advocates for a shift from the current app-centric internet to a user-centric model, where users have control over their data and can benefit from it economically and socially.

• Blockchain Powered:

• Built on Substrate, Litentry aims to become a Parachain of the Polkadot Network, leveraging the cross-chain ecosystem and shared security.

• Identity Management:

• Users can manage their access history and privacy data generated in apps or services. Identities are kept anonymous and independent, with data stored on decentralized platforms like IPFS or Arweave.

• Identity Staking:

• Users can stake their identities in an identity pool and receive rewards while ensuring data protection. This enables anonymous data matching and permission data queries.

• Decentralized Ecosystem Contributor:

• Litentry allows for the sharing of identities anonymously between platforms, eliminating the need for multiple accounts and preventing services from building user profiles.

Decentralization Aspects:

• Decentralized Identity Storage:

• User data, including identity credentials, are stored in decentralized storage rather than centralized servers.

• Decentralized Identity Authentication:

• Validators connect to the decentralized network to independently validate authentication requests.

• Decentralized Identity Data Allocation:

• User data generated from third-party services can be processed by the Litentry Network, providing trustworthy data allocation from various sources.

Network Interoperability:

Litentry is built on the Substrate Network and aims to become a fundamental part of the Web3 infrastructure, with layers including the network, runtime, and application layers.

Token Economy:

• Identity Staker:

• Users who stake their identity records on-chain and into identity pools.

• Identity Validator:

• Validators confirm the staked identity and become validators for subsequent blocks.

• External Storage:

• Decentralized storage records all related data of the identity.

• Node:

• Maintainers of the network, responsible for recording network state and responding to data queries.

• Data Buyer:

• Entities that require identity data for various purposes.

Architecture:

Litentry’s protocol is constructed with several components, including the Litentry Runtime, Litentry Authenticator Mobile App, Litentry DApp Playground, Litentry IPFS Data Center, and Litentry SDK. These components work together to build a decentralized ecosystem with blockchain as the backend service.

Incentivization:

The LIT token is the native token of the Litentry Network, and it incentivizes various participants in the ecosystem, including identity stakers, validators, DApps as data origins, nodes, and external storage providers.

Privacy and Data Protection:

Litentry employs methods such as HDKD to generate new soft-derived key pairs and ring signatures to protect user data and privacy. The off-chain worker and cryptographic algorithms based on Schnorr25519 are used to ensure data protection and privacy.

In summary, Litentry’s whitepaper presents a comprehensive framework for a decentralized identity management system that empowers users to control their digital identities and personal data across multiple platforms while providing a secure and privacy-focused infrastructure for identity verification and data management.