Polkadot ecosystem, the Ethereum’s Contender - Crypto Academy / S4W7 - Homework Post for @allbert
Introduction
It is another week of Crypto Academy and yet again an introduction to the much interesting and promising Polkadot Ecosystem by professor @allbert. As per the requirement of the homework, I have explored most projects on the Polkadot ecosystem and decided on exploring the Litentry project with everyone as my assignment.
Why I Chose Litentry
There are many exciting projects currently running and expected to run on the Polkadot ecosystem which offers a wide range of services from DeFi to Cross-border payments to NFT marketplaces.
I choose Litentry because it seeks to enable users to easily access fast and secure identity verification on listed platforms, offering decentralized Two Factor Authentication (2FA) to its users.
The identity services Litentry provides are much more secure than other platforms in the same category and uses have the opportunity to track their data footprint in the decentralized world using its data explorer.
Also, it is amongst the few platforms on Polkadot which have their governance token listed on my patronized exchange platform, Binance.
Description of Litentry
Litentry is a decentralized privacy storage service provider in the Web3.0 ecosystem built on the Substrate framework. It is a decentralized platform that manages user activity data and provides quick identity verification for users on supported decentralized platforms. It collects users' data across various platforms in one place which is easily accessible to the users.
It provides security and transparency in data collected on users and serves as a KYC for quick accessing other DeFi platforms.
Platforms
Litentry has already partnered with 15 platforms and counting on which its services are utilized. The services its partners render various from staking and Defi services, blockchain integration, and connectivity to bot lending services as in the case of Automata.
Tokenomics
Source
The native token on Litentry is LIT which is for the following services:
- Fee for credit/reputation computation which is paid to validators
- Reward for indexed identity databases
- Staking for being an identity Registrar
- Can be deposited in DeFi platforms with identity integrated
The image below shows a summary of the Litentry economic model which depicts how LIT is used in data generation and management.
At the time of this post, the LIT token was trading $4.49 with a 24-hour trading volume of $16,259,029. The current CoinMarketCap ranking is #378, with a live market cap of $120,012,339. It has a circulating supply of 26,767,479 LIT coins and a max. supply of 100,000,000 LIT coins.source
Link to its whitepaper. Litentry has Medium, GitHub, Telegram and Twitter communities.
Functinalities and Real-life Applications
Litentry offers services to both users and developers looking to build Dapps without API integration.
Litentry already has these services running for users :
- Litentry Authenticator
- Litentry Dapp Playground
Litentry Authenticator
Litentry Authenticator is a mobile identity and data hub for a decentralized web. It features 2FA and versatile app/service interfacing, crypto wallet, aliases identity generation, private data aggregation, and NFT data authorization. In the future, it will also integrate identity staking and identity matching services.
Source
The application can be installed from Playstore for android users. It holds all user identity in one place as a wallet application. Users' activity data is cumulative over time is easily accessible anytime as it is secure.
Image from Playstore
Litentry Dapp Playground
Litentry Dapp Playground is made up of various Dapps built on the Litentry network which offers entertainment services to users.
There are currently two Dapps listed on Litentry Dapp Playground which are dSpotify and dTwitter apps.
Developers are also provided with Runtime, SDK, and Light Client services which assist them in creating Dapp connects on Litentry.
Future Development and Associated Projects.
There are currently two projects jet to be completed on the Litentry network, the Litentry App and Decentralized Identity Aggregator(DID).
Litentry app is a mobile tool integrated with identity on Litentry Network. Users could interact with multiple services like recalculate voting power in on-chain governance or get analyzed DeFi services based on credit. It could facilitate the governance process, integrate participants’ more information from linked accounts on other networks, and encourage more users to join on-chain governance with LITs as incentives.
Source
The development of the Decentralized Identity Aggregator was announced on July 16, 2021, which is to tackle multi-network identity aggregation
Technical Analysis on LIT
LIT/USD 1D Chart on TradingView
From the 1d chart analysis, the LIT price has held a strong resistance of $4.598 for a week now, currently holding support of $4.0733 which is currently holding.
The bullish trend over the week is currently accumulating in anticipation of another bull run. The MACD trend hit its highest over last week. MACD has crossed and is staying above the MACD signal line indicating a buy in the market. The market can go both ways as the buy volume looks to decline further.
LIT Investment on Binance
For this illustration, I will trade USDT for LIT on Binance. To carry out this, you will first need a finance account and some BTC in your Spot wallet to carry out the trade. Binance acts as the custodian in this instance
Steps
- Log in to Binance
At the Homepage, Click on Markets at the top Menu
- Click on the search button, select Spot Markets, FIAT and search for LIT in the search button
- Click on the LIT/USDT trading pair
- Choose the Buy option, select the order type(Market, Limit, Stop limit, etc) enter the amount of USDT you wish to trade for LIT, and click on Buy LIT to confirm the trade.
- Once the order is complete, LIT will now be listed in your Spot Wallet as shown below
Litentry proves to be a very secure privacy storage platform that allows users to effortlessly connect to Dapps and other platforms with its authentication and data management services.
Thanks to professor @allbert for the introduction to the Polkadot ecosystem.
Do not use the #club5050 tag unless you have made power-ups in the last 7 days that are equal or greater than any amount you have cashed out.