LIT

What is LIT?

LIT serves as the native token for the Litentry parachain network. Litentry (LIT) operates as a decentralized identity aggregation oracle, focusing on improving the organization and verification of identities across various blockchains. Built on the Substrate framework, Litentry is specifically designed for use with Polkadot, EVM-based platforms, and other multi-chain ecosystems. The platform employs Trusted Execution Environments (TEE), verifiable credentials, and customizable score computation to usher in a new era of digital identity. At the forefront of Litentry's offerings is the IdentityHub, a flagship product that aims to revolutionize the management of identities across blockchains. Litentry adopts a user-centric approach to identity, bridging the realms of both Web2 and Web3, and providing a comprehensive suite for managing user activity and identity data.

---

Recent Video Interview

Main points of the interview:

• Litentry aims to shift data control from service providers to users, advocating for a user-centric internet.
• Focus on practical applications in DeFi, by utilizing on-chain reputation and trustworthiness.
• Litentry's Identity Hub allows users to manage their digital identities, aggregate credentials, and share specific information without revealing their entire blockchain history.
• Plan to expand their use cases to gaming and real-world applications, emphasizing user privacy and data protection.

---

How Does LIT Work?

Litentry operates by allowing users to connect their identities in a privacy-preserving manner, with the aim of providing users with complete control over their personal data and enabling them to derive social and economic value from it. The protocol is versatile and can be implemented in on-chain reputation, governance, DeFi, and customized data services.

Litentry's infrastructure facilitates the transformation of identity data from a disorganized and scattered state to a structured state. This process involves three core layers: the source data layer, address analysis layer, and identity aggregation layer. Together, these layers establish a verifiable and privacy-enhancing identity computation process.

The functionality of the Litentry protocol unfolds in three main stages: linking sensitive identities, generating scores and credentials, and issuing verifiable credentials.

The LIT Token

The LIT token has a wide variety of usages, such as:

• Governance: Enables users to actively participate in project governance.
• Maintaining the network: LIT serves as a reward for the community contributing DOT to support Litentry in auctioning Parachain on the Polkadot network.
• Incentivizing users to confirm their identity: LIT is utilized as a reward for the initial users who confirm their identity.
• Transaction fee: Users are required to pay a certain amount of LIT as a transaction fee each time a matching request is initiated. This fee is distributed to the staking identity owner and identity contributor.
• Slashing: LIT plays a crucial role in the slashing protocol, serving as a mechanism to safeguard Litentry against potential attacks or undesirable behavior.

LIT Team Background and Partners

Hanwen Cheng, the founder of Litentry, previously served as a Software Engineer at Parity. During his time working on the Signer project at Parity, Cheng recognized the necessity for an interoperable identity system. This realization prompted him to initiate a side project, which eventually evolved into Litentry. In 2019, Cheng formalized the project by assembling a team and securing substantial support. Litentry embarked on its journey, receiving a grant from the Web3 Foundation and significant funding from prominent entities such as FBG, Candaq, Hypersphere, Signum, Altonomy, and other cryptocurrency venture capitalists.

LIT partnerd with many big names in the crypto spaces, namely Moonbeam, Automata, Bitfrost, Phala Network, RMRK, Arweave, SubQuery, Acala, and many more.

LIT Project Development

Litentry is pleased to announce a strategic partnership with DWF Labs, a global leader in digital asset market-making and a multi-stage Web3 investment firm. In this collaboration, the two organizations aim to redefine the decentralized identity management sector within the Web3 ecosystem. Their joint efforts will focus on assisting users in aggregating their data and empowering them with control over their identities.

Litentry, in its recent unveiling of IdentityHub, offers users a tool to effectively manage their digital identity data scattered across various platforms. Additionally, the platform enables users to generate and manage a verifiable identity through privacy-preserving computation. Furthermore, IdentityHub allows platforms to regulate access to decentralized applications (dApps) through user-generated verifiable credentials. Notably, within the initial week of its launch, IDHub attracted an impressive user base of over 20,000 early adopters, with more than 5,000 verifiable credentials generated.

LIT Price Analysis

As of December 25 2024 LIT has a marketcap of $1.5M. This is {{percentagefromath}} from its all time high of $0.00533113. In terms of its tokenomics, there's a total supply of 100B with 51% currently outstanding. Keep in mind LIT has a fully diluted value of $3M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.