On February 4, the LIT token of the Litentry platform is launched on Binance. Available for trading on BUSD, BNB and USDT pairs. Later, Polkadot and Ethereum will also be integrated.
In case you are not aware, they have enabled the possibility of staking our DOT, BNB or BUSD on Binance's own platform to receive a few LIT tokens.
Litentry, still in the testnet phase, wants to unify our activities on the network in the same identity. As we well know, what we like the most about cryptocurrencies is decentralization and privacy. Therefore, there may be people who with the departure of Litentry have doubts about how this issue will be solved.
In any bank or traditional business, our assets and transfers are always assigned to a person, with a name and surname. At all times you know who that person is and what they are doing or where they have transferred the money. With Litentry this will not happen.
Litentry is based on a DID protocol. This means that our identity will be encrypted and represented by numbers and letters. Typical of cryptographic technology. All your transactions within the blockchain are linked to that sequence of numbers and letters and no one will be able to know who it is.
The objective of Litentry is to provide all DeFi platforms that offer loan services with information on users that operate on the blockchain, be it that of Polkadot, Ethereum or Binance. In this way, you can more easily identify if that person pays their loans, if they have staked the governance tokens, what is their voting power or how many collaterals they have backing their credit.
For example, if you at Compound have repeatedly requested a DAI loan and have paid it without problems, it is important that this information is useful if you want to migrate to AKALA. So it is known that you pay your debts. This will give you points and thanks to Litentry, you will benefit from a lower interest rate.
AKALA will analyze the activity, based on your identity, that you have carried out on other blockchains and platforms in a matter of seconds.
It also intends to expand into the world of social networks and video games. Your privacy will never be exposed and to access the different applications interconnected with Litentry, you will have to use a 2FA factor through your app. Something similar to the Google verification system that we do with the phone.
To enter Litentry and enjoy a unique identity for all your operations, you will have to pay a fee in LIT tokens, and also leave a certain amount in staking to support the project. It is the requirement that they ask us to participate.
