This paper analyzes a sort of color still image algorithm based on the Logistic map sorting, and verifies the confidentiality. Further, this algorithm will be applied to the authentication module in network identity authentication system. A new, safe and effective certification system is realized based on the network identity card, and the authority authentication is provided for users requiring identity identification on the network. Nowadays, cryptography and network security is a hot topic for communication and computer industry. Currently, encryption technique in the information security mainly contains conventional private key encryption system and public key encryption system, the former has low computation overhead, but its encryption strength is not high; the latter, although has high encryption strength, its computation cost is huge. Therefore, it has profound theoretical significance and wide application prospects to research a sort of information encryption algorithms and information security software system with security, good confidentiality and high calculation speed. Chaos phenomenon is a determinacy process which is similar to random, and often appears in nonlinear dynamical system, this process is neither periodic nor convergent, and is sensitively dependent on initial value [1-3]. These basic features of chaotic system can just meet the basic requirements of secret communication and cryptology. The researches of Secret communication, information encryption and information hiding technology are based on chaos theory, and have become one of popular and frontier topics developed by the cross fields of international nonlinear science and information science. Also it is an international, high-tech researched new field, cryptography based on chaos theory has recently become very popular science [2]. In our paper, chaotic model images encryption technology is applied to Network identity authentication system to prevent rampant e-commerce fraud.