Problem & Solution

The Problems

Litentry has identified several key problems in the current digital identity landscape. They include:

1. Data Fragmentation

Each online service, social media platform, and blockchain application often requires separate credentials and identity information. This fragmentation leads to inefficiencies and complexities in managing personal data. Additionally, the inability to link these disparate identities can hinder seamless interactions and the verification of credentials across different services, creating a fragmented user experience and limiting the potential for cohesive identity management. As web3 continues to grow, more decentralized identity data will be generated and stored on the blockchain. However, this data is fragmented and lives on different networks and blockchains, making it difficult to manage and integrate.

1. Lack of Trust in Digital Identities

Traditional digital identity systems, often centralized and controlled by a single entity, are susceptible to various forms of fraud and abuse. Centralized databases can be compromised, leading to identity theft and unauthorized access to personal information. This lack of security and transparency undermines trust in digital identities, making it challenging for individuals and organizations to rely on these systems for critical applications. Furthermore, the absence of robust verification mechanisms means that false identities can be easily created and used maliciously, exacerbating issues of fraud and deception in digital transactions.

1. Privacy Concerns

Centralized identity systems pose significant risks to user privacy. Personal data stored in centralized databases can be accessed, shared, or sold without users' explicit consent, leading to potential misuse and privacy violations. In addition, centralized entities often lack the means to provide granular control over personal data, making it difficult for users to manage what information is shared and with whom. This lack of privacy protection not only exposes users to data breaches and identity theft but also erodes their trust in digital services and platforms.

1. Inefficiencies in Data Management

Managing identities and credentials across multiple platforms can be cumbersome and inefficient. Users often need to repeatedly input the same personal information, verify their identities multiple times, and navigate through different interfaces and procedures. This redundancy not only wastes time and resources but also creates friction in the user experience. For organizations, maintaining separate identity systems for different applications can lead to operational inefficiencies, higher costs, and increased complexity in ensuring data accuracy and security. The lack of streamlined identity management solutions hampers both user convenience and organizational effectiveness.

The Solution: Litentry's Value Proposition

The Litentry Identity Oracle allows users to move from fragmented, individual identities to aggregated identities. An aggregated identity creates a more comprehensive identity profile by creating an identity graph of the account relationships of the identity owner. This aggregated identity follows W3C DID standards and provides a lot of solutions including:

1. Secure and User-Centric Identity

The Litentry Identity Oracle via the IdentityHub leverages verifiable credentials and a decentralized infrastructure to create a secure identity solution that puts users in control. This helps to create seamless identity management, personal data analysis, and grants granular access to control which data is shared with third parties.

1. Empowering Ecosystem Projects and Builders

The Litentry Identity Oracle aims to create a connection between various Web2 and Web3 projects, thereby bridging the gap between the two distinct worlds. This helps foster a thriving data economy where developers can leverage verifiable credentials and a decentralized infrastructure to build innovative use cases.

1. Privacy-Preserving Verification

Unlike traditional solutions, we prioritize user privacy. Litentry identity oracle harnesses the Trusted Execution Environment (TEE) infrastructure which adds a privacy-preserving layer between raw blockchain data and data shared with a dApp. It also provides secure storage for the sensitive identity graph. With this, Users have complete control over their data, choosing what information they share with dApps and services. This allows them to reveal specific details without exposing their entire online footprint.

1. Trusted Data Economy

The Litentry identity oracle fosters a trusted data economy where data is treated as a valuable asset that can be collected, analyzed, traded, and utilized to drive economic growth and innovation. In this economy, data is not just a byproduct of digital activities but a critical resource that businesses and organizations can use to create value, improve decision-making, and develop new products and services. The data economy hinges on the ability to collect large volumes of data, ensure its accuracy and security, and apply it effectively to generate insights and drive economic activities.