BeinCrypto spoke to Hanwen Cheng, CEO of Litentry, about digital identities and security on the internet.
The Litentry platform and its token have been receiving optimistic buzz within the altcoin world just lately. On the time of writing, the LIT token was at $2.29.
Litentry is a decentralized identification aggregator that permits the linking of person identities throughout a number of networks.
The platform supplies a safe automobile by which customers handle their identities. As well as, they’ll entry dApps real-time DID knowledge of an identification holder throughout totally different blockchains.
Anybody can create DID verification algorithms and submit them to Litentry, making identification knowledge simply accessible on the internet.
For Cheng, the concept for this platform got here when he seemed on the identification business and its relationship to the crypto area.
Identities within the digital age: Web2 vs. Web3
“That’s how we got here up with this concept and began constructing the Litentry undertaking. Within the early levels, we proposed identification matching and identification staking companies,” he explains.
“However steadily we realized that there wasn’t sufficient identification knowledge on a single blockchain to make the proposal viable as a result of identification knowledge is so fragmented throughout networks. So the very first thing we’ve to resolve is to summarize this identification.”
“Then we may create our very significant identification for the person. The elemental a part of this for us is to construct an mixture identification, and that mixture identification can then be utilized in many eventualities,” he says.
In the meanwhile, customers have handy over their identification data when opening accounts. The Know Your Buyer (KYC) necessities are commonplace throughout the centralized crypto exchanges.
“This can be a quite common case for Web2 functions, however we most likely don’t must do it this manner in a Web3 world.”
As talked about, the Litentry token ecosystem has been a lot talked about. Nonetheless, it isn’t simply fascinating for its altcoin funding capabilities.
Fairly the LIT token is about calculating scores for customers. “The Litentry community computes an identification scoring consequence in accordance with the required algorithms. The computing algorithms might be programmed simply like create a chunk of good contract,” explains Cheng.
“To get a significant rating, we first must calculate the related identification data. Second, each scoring course of consumes computing energy and community throughput from validators. Validators contribute to this community. So each time a person sends a scoring calculation request, they must pay LIT tokens as gasoline to the community’s contributors.”
“As well as, since such a calculation is sort of difficult and requires calculation surroundings from the auditors, every auditor should use LIT tokens as prepayment to make sure their efficiency and reliability within the community. Lastly, we’re additionally making an attempt to encourage extra exterior computing companies to affix this community and offload the computing energy from validators,” he says.
Varied actors inside the Litentry community undertake this work. These embrace exterior computing companies which full the troublesome computing duties. They pull the information from listed knowledge suppliers corresponding to Infura, Etherscan and output the calculated scores for a single wallet deal with.
“The info is discrete as there are not any relationships between them, however inside the Litentry community, the information is mixed. Validators obtain the scoring computing outcomes from the exterior computing companies and generate a weighted, aggregated cross-chain identification rating,” he explains.
“It additionally encrypts the ultimate consequence, which ensures that solely the person can learn the scoring knowledge. Finally, all of those gamers shall be rewarded with LIT for his or her contribution to the Litentry community.”
Blockchain as the idea for digital identities
Litentry needs to place identification on the blockchain in a secure way. From there it’s not essential to add this data.
“Why couldn’t we use the related on-chain person historical past as KYC materials? Since many of the data is public and clear, the one drawback is that it’s pseudo-anonymous and discreet.”
Nonetheless, for Cheng, discretion continues to be necessary. This can be a balancing act between maintaining the data non-public whereas nonetheless utilizing it throughout networks.
“It’s like creating a distinct you within the crypto room, however no different individual can see the complete image of it because the identification affiliation data is securely saved within the Trusted Execution Surroundings.”
This identification would then be the choice to KYC.
“A person can present this identification for any dApps. On an IDO platform, the dApp sees, for instance, that the person already has quite a lot of actions in Ethereum and holds many cryptocurrencies and has not offered them. The person is seen as a robust keeper and a focused person. The dApp needs to whitelist the person and distribute extra assignments as an alternative of different newly created pockets addresses, which can be a bot,” Cheng explains.
The identification protocol can be utilized within the DeFi world for credit score, for on-chain governance as voting energy, or in social media as status.
“The identification can be applied in a means that protects knowledge privateness. The Litentry community shops the identity-related knowledge within the TEE units, which ensures that solely the person himself can entry it. And the person can authorize others to question their related profile knowledge.”
“The Litentry community calculates an identification analysis consequence in accordance with the required algorithms. The calculation algorithms may merely be programmed, like a chunk of good contract,” he says.
The way forward for digital identities
Cheng and Litentry’s work is only a glimpse of what might be possible for Web 3.0 and the crypto world transferring ahead.
The platform can be already prepared, taking a look at what’s subsequent and the place it want to develop.
“We want to take part within the Kusama Parachain public sale. First, we nonetheless must take a couple of improvement steps. The event of an important identity-related features/palettes continues to be ongoing. We wish to have the important thing features prepared as quickly as we’re on board Kusama,” he says.
As well as, the Litentry workforce is presently engaged on inclusive NFT Twitter linkers and IDO whitelisting.
“I’m very assured in regards to the improvement and the Parachain public sale. We imagine within the potential of our identification aggregation and computing community with present DeFi and on-chain governance. The Polkadot Parachain public sale shall be our ultimate vacation spot and we’ll use Kusama as a platform to deliver a transitional parachain on board. “
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