BCGAME - Free 5BTC Daily Bonus!Litentry cryptocurrency (LIT) is a decentralized cross-chain identity aggregator, built on Substrate, that features an identity-staking and matching engine.
In this article, we will discuss:
What is Litentry (LIT) token?
The project focuses on decentralized identity (DID), allowing user identities to be linked to various distributed protocols. Litentry acts as a DID aggregator, where it collects, indexes and distributes DIDs to blockchains.
Most importantly, it performs all these activities in a decentralized and verifiable manner. Notably, built on the Substrate network, the platform works towards the ultimate goal of eradicating identity redundancy in the web3-based application ecosystem.
The problem
In today's Internet world, third parties take control of the storage of user passwords and data relating to their online activities. Unfortunately, Internet users are coerced into accepting unfavorable terms and conditions, decreasing control over their personal data.
Litentry cryptocurrency brings change, returning control of user data to users through a user-focused internet using technology blockchain. As such, revenue from the use of users' data makes them share in the profits. Before Litentry, these profits went to third parties managing user data.
Litentry Platform Key Features
In addition to using decentralized ratio technology (DLT), the platform has other critical features that help bring the much-needed revolution to the blockchain industry. Among them are the main ones:
- Identity Management – The platform is about identities, and their management is at the heart of the protocol. This feature provides anonymous and independent identities from applications and/or services used by the user.
- Distributed Storage – After collecting the data, the protocol stores it decentrally to improve access from every corner of the distributed world.
- Identity Stakeout – This is a unique feature. As well as betting tokens and earning rewards, Litentry allows users to wager their identities and get rewarded.
- Decentralized Contributors – Instead of creating multiple accounts to use different platforms or services, the project allows users to use one identity to interact with multiple services anonymously. Interestingly, the user does not need to provide passwords or any other registration details.
Team behind Litentry (LIT) token project
Litentry cryptocurrency is developed by a team of blockchain professionals based in Germany. Its founder was an early contributor to Parity, a decentralized network. Notably, the project's engineering team's background is rooted in Ethereum.
The protocol is funded through a grant from the Web3 Foundation. On its Github page, the project lists eight team members with organize permission.
Litentry cryptocurrency architecture
To bring all of the above features to life, the protocol uses a layered architecture. On the top layer is the Litentry Runtime , which lives in the Substrate. The Runtime layer is a Polkadot Parachain and employs offline workers when generating identities.
The second layer is the user side. Here, users flex their muscles when it comes to data under their control. Note that user data coming from apps is anonymous, stored decentrally, and separated by crypto.
In the Litentry Authenticator layer, we have the mobile data hub. The hub can be used to manage the different identities of a user. In addition, the hub can be connected to various IoT devices desired by the user.
Next is the Litentry SDK, allowing developers to use their creativity to create completely decentralized applications and/or services. In addition, Litentry IPFS data center offers users the chance to verify the data attached to their identities.
The middleware layer comprises services such as out-of-chain capture and query servers. It is also comprised of a client-side SDK library that helps connect front-end applications with decentralized networks.
Literacy Tokenomics
The incentive mechanism in the Litentry platform takes into account different players such as an identity staker, validator, external storage, node and data buyer.
- Identity staker – is the person who has an identity record and a share in the identity pool.
- Identity Validator – An identity staker becomes a validator of new blocks when its identity is confirmed.
- Storage – stores all data about an identity in a decentralized way.
- Node – The node is a critical component of the Litentry platform. Their job is to perform functions such as invoking workers outside the chain to validate identity correctness and connect to external decentralized stores.
- Data Buyer – is any entity on the blockchain that requests identity validation.
- Data generator – are entities that generate data and can include applications, users or services that offer migration services.
Lientry Token (LIT)
Litentry's base asset is called LIT. The network uses the asset to reward the identity stakers in the identity pool. Two types of rewards that punters receive are the block reward and the corresponding fee.
In addition to stakers, validators are motivated to verify the accuracy of the data truthfully. On the other hand, data generators enjoy the benefits of the Litentry Foundation in the form of donations.
External storage operators earn a section of the fee paid by users who interface with the service. Others who are encouraged to use LIT tokens are us.
Those who pay using LIT tokens include identity shoppers. Please note that these entities only have access to the winning identity or identities during an identity matching process.
Is cryptocurrency Litentry (LIT) a good investment?
When deciding whether Litentry (LIT) is a good investment for you, taking into account the risk and reward is crucial. We can predict the LIT price for both the short and the long term, but expectations need to be reasonable for each. In the long term, we believe LIT will appreciate it based on the fundamentals of the Litentry project and the progress the team is making against the roadmap's goals and milestones.
Using Technical Analysis, we can predict what the LIT price might be in the short term and calculate our investments accordingly. Using horizontal resistance and support levels, moving averages, various indicators and other techniques, you can make an informed price forecast on whether the price will rise or fall in the coming days, weeks and months.
O cryptocurrency market it is extremely volatile and difficult to predict in the long term, so researching Litentry's fundamentals and progress is an essential task before deciding to invest any amount of funds for the long term with the aim of holding them for months or years. When analyzing the Litentry price to form a price forecast for the short or long term, it is essential to take both technical and fundamental analysis into account.
Conclusion
The identity problem is twofold; users can create multiple entities to defraud a company. On the other hand, malicious agents aggregate user data and sell it to the highest bidder, without profiting from the real owners of the data.
Fortunately, Litentry uses a layered approach to comprehensively address the issue, to the benefit of identity owners and decentralized platforms. A toast to another promising project with a unique approach to solving some of the most crucial problems that often go unnoticed.
