Decentralized Authentication

Created by Admin KL, Modified on Thu, 16 Oct at 4:27 PM by Admin KL
Decentralized Authentication with Litecoin as a Service
? Decentralized Authentication with Litecoin as a Service
The Problem: Traditional Authentication is Centralized
Most modern authentication systems still rely on centralized infrastructure, leading to:
? Data Breaches – Passwords and sensitive data exposed
? Single Points of Failure – One compromised server = system-wide vulnerability
? Lack of Privacy – User identities stored and sold
⛔ Platform Dependency – Logins tied to provider-controlled systems
❌ No True User Control – Users can't verify or manage their own credentials independently
The Solution: Decentralized Authentication + Litecoin Blockchain
With Litecoin as a Service, we offer a fully decentralized authentication system using message signing, OTP derivation, and wallet-based identity.
No servers. No central control. Just blockchain-backed verification.
? What is Decentralized Authentication?
Users authenticate by signing messages with their Litecoin wallet
Messages can be Dapp-generated or user-generated
OTP (One-Time Password) can be derived from the signed message
Fully self-sovereign and verifiable authentication method
This method is ideal for Dapps, SDA(NFT)-based access, and Web3 login flows.
? Message Derivation Options
Your app can choose how the OTP message is generated:
Dapp-Generated Message
The app/service creates the message to be signed
Helpful for recovery systems and standardization
Ideal for centralized organizations transitioning to Web3
User-Generated Message
The user independently creates and signs their own message
Offers maximum privacy and control
The user accepts full responsibility for managing credentials
In the user-managed model, if the OTP or wallet is lost, no recovery is possible.
? Wallet Backup is Essential
Users must back up their credentials to ensure recovery:
? Mnemonic Phrase used during Blockchain 2FA setup
This is the only mean to regenerate OTPs or verify identities if devices are lost.
✅ Standards & Compliance
This decentralized authentication method aligns with:
? Decentralized Identity (DID) models
? Self-Sovereign Identity (SSI) principles
?️ Zero Trust Architecture
? Privacy regulations and blockchain compliance
No passwords. No data harvesting. No vendor lock-in.
? How It Works (With Litecoin as a Service)
User Visits the App Login via his primary credentials (i.e. Username & Password)
Connect Wallet Connect to Litecoin Extension Pteri Wallet
Message Generation & Signing Either the app or user generates an authentication message and sign it using connected wallet
Add Secret Key Derived from Sign Message to Extension Wallet / Pteri Mobile Generate OTP from the signed message and Use the OTP
Grant Access If the OTP is valid, access is approved
? Enterprise Integration
Enterprise developers can easily integrate using:
? LiaaS APIs to create Decentralized Authentication
? Custom fallback policies for recovery flows (optional)
Fully hosted, secure, and scalable — built on the Litecoin network.
? Get Started with the API
? Onboard to Enterprise Plan  → Azure Marketplace 
? Try Message Signing  → Sign Message
? Generate OTP  → Derive OTP (Only available on Enterprise LiaaS Plan)
? Live Example Use Cases
✅ Wallet-based login for dApps
✅ SDA-gated access portals
✅ Universal decentralized 2FA for Web3 platforms