Litentry (LIT)

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Identity Management and Aggregation

Litentry enables users to link and manage their decentralized identities (DIDs) across multiple blockchains and Web2 platforms. It provides a secure, privacy-preserving way to aggregate identity data into a single identity graph, allowing users to control their personal data and share verifiable credentials.

Decentralized Applications (dApps) and Services

Litentry supports dApps that use identity data for various purposes, such as the Litentry Crowdloan platform where users complete DID-related tasks to earn rewards. It also powers the Polkadot Name System (PNS), which gives users unique on-chain names linked to wallets, smart contracts, NFTs, and more.

Credit and Reputation Scoring

Litentry processes decentralized identity data to calculate credit scores and reputation metrics. These scores can be used in decentralized finance (DeFi) for lending and borrowing, governance participation, and rewarding active users in on-chain voting.

Cross-Chain and Multi-Platform Use

Litentry’s protocol works across multiple blockchain ecosystems, including Polkadot and EVM-compatible chains, enabling seamless identity verification and management in a multi-chain environment.

Token Utility

The LIT token is used to pay fees for identity verification and credit calculation services on the network, stake for rewards, and act as collateral in DeFi lending. It also incentivizes participation in the ecosystem through programs like the Ambassador and Node programs.

Privacy and Security

Using Trusted Execution Environments (TEE) and verifiable credentials, Litentry ensures that identity data is processed securely and privately, allowing selective disclosure without exposing sensitive information.

User Experience Enhancements

Litentry is developing features like single sign-on (PolkaSignIn) to simplify logging into Web2 and Web3 services without passwords, improving usability while maintaining privacy.

Advantages

• Litentry offers a decentralized identity solution that lets users control and manage their identities across multiple blockchains, enhancing privacy and security.
• It supports cross-chain identity verification, making it useful for various decentralized applications and projects.
• The platform uses advanced technology like Trusted Execution Environments (TEE) and verifiable credentials to protect user data.
• Litentry is built on the Polkadot network, benefiting from fast and low-cost transactions.
• Users can stake LIT tokens to earn rewards and participate in network governance.
• It integrates Web2 and Web3 identities, providing a unified identity management system.
• The project has strong backing, having raised significant funding and partnerships with notable crypto platforms.

Disadvantages

• The LIT token price has shown volatility and recent declines, reflecting market fluctuations.
• Trading volume for LIT can be low at times, which might affect liquidity.
• The market capitalization is relatively small compared to major cryptocurrencies, which can lead to price swings influenced by large holders.
• The project is still developing, so some features and adoption levels are evolving.
• Migration to new contracts (e.g., Heima) may require users to update their holdings manually.

Founders

Litentry was founded by Hanwen Cheng, who is also the CEO. He was a former Software Engineer at Parity and started Litentry as a side project while working there.

Team Background

Hanwen Cheng has over 5 years of blockchain experience and 7 years in computer science. The team is technology-driven and based in Germany, with early contributors from Parity and Ethereum project backgrounds.

Company Details

Litentry Technologies GmbH is the company behind Litentry, focusing on decentralized identity aggregation services built on the Substrate framework and tailored for Polkadot and other multi-chain ecosystems.

Key Investors in Litentry

Litentry has attracted a diverse group of investors from the crypto and venture capital space. Some notable investors include:

• Venture Capital Firms: 1PAR Research, Berkeley Blockchain Xcelerator, 7 O'clock Capital, Angelone Capital, ArkStream Capital, FBG Capital, Candaq Fintech Group, Signum Capital, Hypersphere Ventures, NGC Ventures, D1 Ventures, BlockVC, Paka Capital, Digital Renaissance, LD Capital, RockX, Altonomy.
• Crypto-Focused Investors: Binance Labs, Master Ventures, Oasis Capital.
• Specialized Funds: PAKA (Polkadot Eco-Technology Fund), which supports Polkadot ecosystem projects including Litentry.

Funding Rounds

• Litentry completed a seed round in October 2020 with participation from about 10 investors including FBG Capital, Candaq, Hypersphere, Signum, and others.
• The project has raised over $22 million across multiple rounds including private and strategic rounds.
• Early support also came from the Web3 Foundation Grants in 2019.

Summary

Litentry’s investors are a mix of blockchain-focused venture capital firms, crypto investment funds, and ecosystem-specific funds supporting Polkadot and decentralized identity technologies.

Halal Status of Litentry

Litentry is halal because its revenue model is based on service fees for identity verification and aggregation, which aligns with Islamic principles as it represents payment for actual services rendered. It is a decentralized identity aggregator built on the Polkadot ecosystem, focusing on privacy-preserving and interoperable digital identity management without involving prohibited activities.