Litentry is a decentralized cross-chain identity aggregator built on Substrate. LIT is the native utility token of Litentry, it was launched on the Binance in February 2021.
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What Is Litentry?
Litentry is a decentralized cross-chain identity aggregator built on Substrate. Substrate is a framework made especially for developing decentralized blockchains and it is intrinsically compatible with Polkadot, so obviously, Litentry launched as a parachain on the Polkadot Network. Polkadot is part of Web 3.0 and aims to increase the interoperability of all existing blockchains.
LIT is the native utility token of Litentry, it was launched on the Binance in February 2021 and was listed on Uniswap, PancakeSwap, Gate.io, Hotbit, MXC, CoinEx, and DODO. LIT has strong connections with BNB, BUSD, DOT and at first, LIT was awarded for stacking these tokens. Lition (LIT) is on the Ethereum network (ERC-20) so it can be stored using any ETH compatible wallet. In the Litentry network LIT is used to pay fees for on-net transactions. LIT is also used as a concomitant for DeFi lending & borrowing services. And companies that will set up their identity databases on the Litentry network will receive compensations in LIT.
Litentry Technologies GmbH is establishing an app that will accumulate and manage decentralized identifiers (DID) among other blockchains. Litentry’s mobile app serves as a secure platform for users to collect their DIDs and operate them in one place. This app is a platform for developers to use DIDs as an input into new projects, something like what the Seascape Network (Crowns CWS) does. Nowadays corporations such as Apple and Google use our data as they want. They aggregate our messages, search queries, etc. and use them for advertising and other purposes. Litentry, on the other hand, offers a platform where users can choose what to share and whatnot. Roughly speaking, if corporations sell our data to advertisers that means we should receive some of the money from these sales too.
But of course, getting our slice of the corporate pie is not the only problem Litentry is striving to clarify. Developers can create an alternative decentralized finance (DiFi) service applying Litentry’s DID platform. Today when you lend your money to someone using existing DiFi services you have no guarantees that you will not be deceived. You can’t even verify the borrower's credit story. Fortunately, this problem has a solution: users on Litentry can sign transactions with private keys linked to their individual identity.
Litentry allows its users to use one identity to interact with all services (such as Facebook, Twitter, etc.) anonymously instead of creating accounts on each service to use them. And users don't need to keep passwords or any other authorization details.
Pros and Cons of Litentry
Advantages of Litentry
- Polkadot is growing right now: it became a top ten coin by market cap recently. So, all Polkadot-based projects also have a chance to rise in price.
- Litentry is working on really important problems with DIDs, so if they succeed, LIT can also rise in price.
- Litentry is a very active company: their Twitter and GitHub get new posts often so it seems that they won't abandon their project in the foreseeable future.
- Popular YouTube bloggers and analytics claims that Litentry is one of the most interesting Polkadot projects right now. Coin Bureau’s listed Litentry in his top three projects built on Polkadot.
Disadvantages of Litentry
- Because Litentry is part of the Polkadot Network, it contains all Polkadot disadvantages. Despite its growth on the market, Polkadot is still not a very popular blockchain and it is competing with many other blockchains like Tezos, Cosmos, and Cardano. So LIT may not be the best token for investment.
- Moreover, industry-leading blockchain Ethereum already shows entrenched network effects which Litentry focuses on.
- There are many more profitable and stable Polkadot-based tokens out there, such as the REEF for example.
- Litentry doesn't have a detailed road map on their website and that seems at least strange. Everything will be super cool in the future. OK, but when exactly?
Where to Buy Litentry?
Storing LIT: Best Litentry Wallets
Litentry seems to be a very exciting project; however, its profitability in the short-term period is questionable.
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