Searching for Alpha: Lit Protocol

Lit Protocol is a key management protocol that enables programmatic encryption and signing. It allows users to store private / permissioned data on the open web as well as easily onboard them to Web3 applications via a wallet-as-a-service (WaaS) feature. A notable feature of Lit Protocol is that it is blockchain-agnostic, meaning that it can be used both on-chain and off-chain and integrate the advantages of decentralized key management as a result.

Lit Protocol uses threshold cryptography to enable the reading and writing of data between different platforms, which means that no one central node ever holds “executive authority” over the network. Instead, whenever data is to be read or written, a pre-defined threshold of signatures must be met in order for the interactions to be considered valid.