Explaining Litentry Crowdloan and Polkadot Parachain Auctions
Originating from the concept of Web3, Litentry grows over the Substrate framework and sparkles in the Polkadot ecosystem. Becoming a Parachain is an important milestone for Litentry to deploy its Mainnet and gain the shared security of the Polkadot blockchain.
5 years since the vision of a heterogeneous multichain framework was first outlined in the Polkadot Whitepaper, Parachains are finally ready to launch. It’s officially being announced to start on November 11th, 2021.
Let’s sign up to our waitlist & get your DOT ready to join Litentry’s Crowdloan!
What Are Parachain Slot Auctions
As we all know Polkadot’s goal is to build a “high performance, scalable & heterogeneous multi-chain network” which enables external networks as well as customized layer one “Parachains” to communicate, creating an interconnected internet of blockchains. That’s how it differentiates itself from siloed blockchains like Bitcoin and Ethereum that are not able to communicate information or value with each other.
How exactly does Polkadot try to achieve this goal?
It all began with a highly scalable, modular & universal blockchain framework launched by Parity Technologies — Substrate, which enables developers to create blockchains structured similar to the Polkadot relay chain. Most importantly, every blockchain created by Substrate has the ability to become one of Polkadot’s Parachains that connect & interact with the Relay Chain, and hence an entire ecosystem.
Parachains are self-sovereign native blockchains that rely on Polkadot’s relay chain for security and communication with other parachains. This means that each Parachain can be customized for specific use cases but is still able to work together seamlessly.
But can every Substrate project become Polkadot’s Parachain?
The answer is no. Parachain slots are very limited and will be determined by Parachain auctions.
Parachain auctions are auctions that are held on the Polkadot relay chain to determine which blockchain will connect to the Parachain slot. Once the auction begins, then every project on the network is free to submit their bid (in DOT) to the relay chain. Parachains are sold in a permissionless candle auction which terminates after a random amount of time determined by the system.
What is Litentry Crowdloan
Crowdloan is the newest innovation for projects to gather support & maximize the chance to win Polkadot Parachain auction, in which anyone can contribute by staking DOT in the Crowdloan vault which is stored on the blockchain for a designated period of time. In return, you will earn Litentry’s native token (LIT), giving you ownership & share of our network. Once DOTs are contributed to our Crowloan pallet, Litentry team will be able to use the fund to bid for an auction slot.
Therefore, your backing is very important to us!
If we succeed, the Crowdloan pallet of Polkadot will refund all your contributing DOTs back once the lease period is over, in this case in 2 years.
If we failed, then the DOTs will be refunded to contributors immediately.
What’s the benefit of contributing to Litentry Crowdloan
As a contributor, you will receive Litentry’s native token (LIT) as a reward for supporting us along our journey. Details of the Crowdloan reward plan will be announced on our website soon. Also, signing up for Litentry’s Crowdloan waitlist will give you a 2% extra bonus in LIT.
As your staking will last at least 2 years, we would encourage you to treat this as a long-term investment rather than speculation. Be wise at selecting an excellent, stable & practical project team like Litentry for a 2-year horizon to reduce your overall risk.
How is Litentry contributing to Polkadot Network as a Parachain?
If Litentry wins the slot auction and becomes a Polkadot Parachain connected to and secured by the central Relay Chain, we will share and benefit from the security, scalability, interoperability, and governance of the Polkadot network with our own individualistic design. Also, its composability nature allows sharing of data and assets between Parachains, opening up a host of new use cases and applications beyond your imagination.
Litentry is a privacy-preserved DID Aggregator that serves unique functions in the Polkadot ecosystem & provides liquidity, interoperability, and consistency for the multi-chain identity data. Becoming a Parachain maximizes the efficiency of sharing identity data between Litentry & other Parachain projects. And with an aggregated cross-chain identity, blockchain projects could offer dedicated graded identity services/functions to power better Web3 services.
- With asset holding status & borrowing history, Litentry can calculate an individual’s credit rating to facilitate analyzed DeFi services;
- With on-chain governance history, Litentry can solve big whale issues and empower those with good on-chain behavior and special contribution;
- By bringing together your social media account like Twitter with Ethereum addresses, Litentry bridge the gap between the two distinct virtual worlds and addresses major concerns in NFT industry around usability and display channels;
- With all the on-chain activities data we aggregate and attach to addresses, A user could generate proof in a decentralized way and submit it to other on-chain businesses like IDO/airdrop whitelisting.
And so many more to achieve!
Make sure you get ready!
- Join our waitlist. Don’t miss out on any upcoming news & information regarding Litentry’s Crowdloan. Sign up to our waitlist and receive a 2% extra bonus in LIT.
- Make sure you have DOT. DOT is the native token of Polkadot network and could be obtained via exchanges like Binance, Coinbase & Uniswap. And have it ready in your wallet;
- Make sure you “unlock” or “unbond” your DOT. Unlocking means your DOT is not currently used for activities such as staking, vesting, or governance. It will take 30 days to unlock your DOT, so if you want to participate in a Crowdloan, prepare to start the unlocking process approximately a few weeks in advance;
- Store your DOT in a compatible wallet with a Polkadot account and corresponding DOT address. We would recommend you to use Polkadot.js browser extension which is safe & user-friendly and make sure you store your private key safely.
Stay tuned with Litentry Crowdloan!
Litentry is a Decentralized Identity Aggregator that enables linking user identities across multiple networks. Featuring a DID indexing protocol and a Substrate-built distributed DID validation blockchain, Litentry provides a decentralized, interoperable identity aggregation service that mitigates the difficulty of resolving agnostic DID mechanisms. Litentry provides a secure vehicle through which users manage their identities and dApps obtain real-time DID data of an identity owner across different blockchains.