Decentralized insurance platform Tidal to use Litentry to enhance security on ID-based networks
Litentry, a cross-chain decentralized identity (DID) aggregator that enables linking user identities among multiple decentralized networks, has announced its newest partnership with Tidal Finance, a decentralized insurance market that supports custom insurance pools for one or more assets.
Through this new partnership, Tidal Finance can offer security solutions for Litentry’s services to prevent financial losses due to hacking of user data and thus protect the users themselves.
Litentry’s goal is to find a way to connect user data from different decentralized platforms and services while preserving user privacy and data sovereignty. This can be achieved through identity aggregation. Through using Tidal’s services and platforms, the flow of user data between different services can be more secure, creating a better and safer environment for DeFi.
On the other hand, Litentry’s DID aggregation API and computational model will help Tidal better understand the on-chain behavior of insurance buyers and thus their risk profile. This risk profile would be used to set premiums for different users based on sophisticated algorithms, prevent false submission attacks, and make the reconciliation process with accredited accounts more robust.
This additional and important user information allows Tidal Finance to offer operations on a more advantageous and efficient platform while protecting user privacy and providing a better user experience.
User identification plays a greater role in decentralized services, especially when the server asks the client for identifying information such as KYC, credit scores, or other sensitive information.
Tidal can ensure the security of data transmission to make interoperable services not only useful but more secure in their communication to protect users from identity theft and provide a safer user experience when using financial services.