What Is Litentry (LIT)?

Litentry (LIT) is a Decentralized Identity Aggregator that allows connecting of user identities across numerous networks. The platform delivers a safe vehicle through which users can control their identities, and Dapps acquire real-time Decentralized Identity (DID) of identity owners across various blockchains. As per its whitepaper, the platform seeks to be the Parachain of the Polkadot Network. Parachain is a data structure that is application-specific and globally rational, validated by the relay chain validators.

As per the Litentry website, Decentralized Identity distinguishes from traditional Identity by its generation techniques, which don't involve scrutinization and centralized control. As Web3 grows, more DID is generated on-chain. This data stays on various networks due to its favorably fragmented character. Still, the current Web3 infrastructure, identical to the internet, does not conveniently connect and combine across other networks, therefore offering problems from a data management perspective. By indexing the data across blockchains, data pieces are removed from the remote data islands, allowing data owners to manage and leverage according to their choice.

A detailed identity image is assembled from fragmented, singular identities to aggregated ones. This aggregated DID completely conforms to the World Wide Web Consortium (W3C) DID standards and can potentially fix most tech companies' isolated ID registry systems. Litentry DID-aggregation allows a platform-agnostic identity design that eradicates the account registration procedure for users and the coding work of creating a new registry method for developers.

LITtoken is native to the platform. The LIT token must be paid to the network to reimburse for the validator's efforts. The LIT token is utilized as a reward for validators. The LIT token is needed as a stake, and the identity registrar could deliver decentralized judgments for users. For examined DeFi lending assistance with Identity combined, Litentry provides LIT token as a deposit currency. If the user has an increased credit score, it leads to a decrease in the deposit.