Identity management is an expanding use case for blockchain technology. Litentry is a platform aiming to build a decentralized identity ecosystem using the LIT token.
The Singapore-based project aggregates user identities across different networks to provide unified login, reputation tracking, and Web3 identity services. As blockchain adoption grows, Litentry looks to leverage identity aggregation to power next-generation applications.
What is Litentry?
Litentry describes itself as an “identity aggregator that enables linking user identities across multiple networks”. In practice, this means Litentry connects identities and reputation data across various blockchain, Web2, and enterprise systems.
Users can link their identities from platforms like email, social media, company logins, and crypto wallets into a single Litentry passport. This unified profile contains the user’s identity data, reputation, and credentials across systems in a single hub. Litentry essentially aggregates siloed identities into one user-controlled profile.
Litentry provides tools for users to own and monetize their web identities. Individuals can use their Litentry profile for login, single sign-on, and identity verification across applications. For enterprises, Litentry’s identity system enables customer acquisition, anti-fraud checks, and consent-based data sharing.
LIT Token Use Cases
The LIT token fuels the Litentry network by incentivizing activity and participation. LIT has four primary use cases:
- Network Incentives — LIT rewards users for adding multiple identities and keeping information updated. It also compensates data providers that supply identity data APIs.
- Reputation Staking — Users stake LIT to back the credibility of their Litentry reputation profiles. Higher stakes signal increased reputation.
- Governance — LIT enables holders to vote on upgrades to the network like adding new identity data sources.
- Fees — Network transaction fees like identity requests and access fees can be paid in LIT.
As adoption grows, LIT-aligned incentives aim to build a rich, dynamic identity infrastructure for next-gen applications.
Litentry utilizes a modular framework that connects to various identity data sources through “identity adapters”. These adapters bridge Litentry to platforms like email providers, blockchain accounts, and social networks. Identity data flows into Litentry where it is decrypted, aggregated, and organized into user profiles.
On the backend, Litentry operates a Substrate-based chain built on Polkadot. This enables identity transactions across Polkadot’s multi-chain ecosystem. Litentry also plans to introduce custom blockchain frameworks like COSMOS SDK to support identity use cases needing higher throughput.
For consensus, Litentry uses a delegated Proof of Stake model that involves LIT stakers electing validators to secure the network. Staking and identity verifiers are rewarded in LIT from a perpetual inflation model.
Future Roadmap and Applications
Litentry aims to become the de facto decentralized identity profile for both Web3 and enterprise applications. The roadmap highlights several upcoming products:
- Reputation system — Allow users to build credibility across domains like professionalism, creditworthiness, and expertise.
- Identity wallets — Sign and securely share verified identity credentials with counter-parties.
- Litentry SDK — Enable developers to build identity features into blockchain applications.
- Identity oracles — Fetch real-world identity data for use in smart contracts and dApps.
As these products roll out, Litentry’s aggregated identities aim to provide utility ranging from KYC checks to personalized AirDrops. Web3 projects can leverage Litentry’s profiles rather than rebuild identity systems. With identity becoming increasingly critical on-chain, Litentry looks to establish a foothold as a decentralized identity hub.
Identity aggregation stands out as an intriguing emerging use case on blockchain. Litentry seeks to unify identity management across disparate platforms through user-controlled profiles. These aggregated profiles aim to facilitate reputation tracking, credential sharing, login capabilities, and personalized services across Web2 and Web3.
With comprehensive, dynamic identity data becoming more essential on-chain, Litentry’s decentralized identity aggregator model provides an ambitious solution.