Litentry (LIT) 101: Explore the Secure Digital Identity
In today’s internet world, third parties take control of user passwords and data related to online activities. Unfortunately, internet users are forced to accept unfavourable “terms and conditions” that reduce their control over personal data.
Litentry (LIT) aims to give control of data back to users through a user-focused internet that uses blockchain technology. This means that users can earn a share of the revenue generated from data usage. Prior to Litentry, these profits went to third parties who managed user data. So, what is Litentry and how does it work? You can find answer to those questions in this Zatrun.com article.
What is Litentry (LIT) and How Does It Work?
Litentry is a network that offers identity processing services focused on privacy and decentralisation. This platform enables users to create decentralised identities (DID) that can connect to multiple distributed protocols. It also works as a DID collector that collects, indexes, and distributes DIDs to blockchains. LIT, the native cryptocurrency of Litentry, supports the decentralised and verifiable services of the network.
With the aim of eliminating identity redundancy, Litentry focuses on a larger goal. The platform, built on the Substrate blockchain, is the first decentralised identity protocol in the Polkadot ecosystem. The protocol runs interchain transactions in the Polkadot network. It also stands out as a security and privacy-focused project. Accordingly, it is managed in a decentralised and democratic manner by LIT coin holders. The platform, which values data ownership, pays users who share their data in the form of cryptocurrency.
In addition to using distributed ledger technology (DLT), the platform has other critical features that help bring the much-needed revolution to the blockchain industry. The project simplifies identity verification processes with DIDs. It also enables decentralised and secure data storage. Users have the advantage of earning returns by staking their identities on the network and can interact anonymously with Dapps.
Is LIT a Good Investment?
LIT is the native cryptocurrency of the Litentry network and is a token based on both the BEP-20 and ERC-20 standards. The token can be used for various purposes on the platform. For example, it is used as a payment method in credit calculation processes and to reward users who create databases. It can also be used for token staking. Due to the decentralised and democratic structure of the network, LIT coin also serves as a key role in governance.
The identity issue is two-fold; users can create multiple identities to defraud a company, while malicious individuals collect user data and sell it to the highest bidder without distributing profits to the real owners of the data. Fortunately, Litentry uses a layered approach to comprehensively address the problem for the benefit of identity holders and decentralised platforms. LIT coin has reached a market capitalization of $39.9 million and is ranked 456th in the market.
