What is LTO Network? All You Need to Know About LTO

LTO Network is a hybrid blockchain platform for creating and managing decentralized workflow applications

Enterprises increasingly recognize the need for blockchain solutions tailored to their specific requirements, including full regulatory compliance and the ability to manage complex workflows securely and efficiently. As industries evolve, the demand for such platforms is expected to grow, highlighting the importance of innovation in blockchain technology that can meet these specialized needs. Addressing this emerging market, LTO Network positions itself as a hybrid blockchain platform designed to support efficient, transparent, and compliant business processes, making it a noteworthy contender in the enterprise blockchain space.

What is LTO Network (LTO)?

LTO Network’s inception traces back to 2014, when it was initially developed as LegalThings One by Firm24, recognizing a gap in workflow management. By 2017, the founders, including CEO Rick Schmitz, CFO Martijn Migchelsen, and lead architect Arnold Daniels, recognized the transformative potential of blockchain technology for their platform and rebranded it to LTO Network. The team, deeply rooted in finance, consulting, and software development, brought a wealth of experience from prestigious firms such as Deloitte, PwC, and Cloud9. Under their leadership, LTO Network evolved to focus on enhancing enterprise workflow efficiency through decentralized solutions.

Headquartered in Amsterdam, the LTO Network launched in 2018 after an Initial Coin Offering (ICO) raised US $5.2 million from ZBS Capital. The network grew significantly, merging with VIDT Dataline in December 2020 to expand its blockchain-powered document certification capabilities. Despite a delayed announcement of its open-source Layer 1 due to strategic marketing decisions, LTO Network continued to develop, focusing on attracting more transactions and validators. This effort was part of an updated roadmap to amplify the network’s effects and foster blockchain adoption across various sectors.

LTO Network’s partnerships, including collaborations with IBM Watson, the ISO, and the Dutch Ministry of ILT, underscore its commitment to standardizing and advancing blockchain technology. Through these alliances, LTO Network has made substantial strides in integrating blockchain solutions into mainstream applications, establishing itself as a key player in the blockchain landscape.

How Does LTO Network Work? Two-layers Structure and Live Contracts

LTO Network stands out in the blockchain space with its innovative two-layer structure, meticulously designed to serve the diverse needs of modern enterprises. Launched in January 2019, this hybrid approach combines a public permissionless layer with a private layer, enabling businesses to leverage blockchain technology while adhering to stringent privacy laws, such as the GDPR. This unique architecture ensures that the LTO Network is well-equipped to facilitate Privacy-Aware Decentralized Apps (PADA), presenting an array of opportunities for projects seeking to balance transparency with data protection.

The public layer of the LTO Network operates on a proof-of-stake mechanism and is permissionless, meaning that it is open for anyone to record transactions. This layer provides the bedrock of security and decentralization for the network, utilizing distributed nodes and a reward system to maintain the integrity and robustness of the blockchain. Unlike traditional blockchains that rely on smart contracts to govern interactions, LTO Network adopts a more flexible approach. Transactions can be made without restrictions, and the onus is on the verifier, which could be an end-user or an application, to decide which transactions to acknowledge and act upon. This design choice facilitates a wide range of applications, especially those involving the ownership and transfer of digital and real-world assets, by allowing users to record any statement as long as the network fee is paid.

The private layer, in contrast, is tailored for secure, efficient collaboration and data exchange between parties. It consists of micro-ledgers, also known as event chains, that function independently of the public blockchain. This setup enables businesses to automate processes and share information privately without exposing sensitive data on the public ledger. By anchoring crucial data points from these private ledgers to the public blockchain, the LTO Network ensures the immutability and verification of data while maintaining confidentiality.

LTO Network’s architecture notably supports real-world applications by allowing entities to manage digital off-chain and real-world assets transparently and securely. Its approach to data integrity and privacy compliance makes it a powerful tool for enterprises looking to integrate blockchain technology into their operations without compromising security or regulatory requirements.

Source: docs.ltonetwork.com

In sum, LTO Network’s two-layer structure bridges the gap between the need for public trust and private efficiency in blockchain applications. By providing a versatile platform that supports transparency and privacy, LTO Network addresses the complex requirements of today’s enterprises, positioning itself as a leader in the blockchain industry for business process automation and decentralized application development. This innovative approach ensures that the LTO Network is poised for growth and adoption across various sectors, promising to redefine how businesses interact with blockchain technology.

Live Contracts

LTO Network revolutionizes business processes with its innovative Live Contracts feature, blending the strengths of both private and public blockchain layers. This forward-thinking approach enables real-time creation and management of agreements between parties, integrating seamlessly with LTO Network’s hybrid blockchain structure. When parties form an agreement, LTO Network initiates a dedicated private blockchain for that contract, ensuring a secure, immutable record of events and states accessible only to those directly involved.

Live Contracts offer a dynamic method for parties to formalize agreements, adapt to changes, and resolve disputes, with the flexibility to modify participants and log discussions directly on the blockchain. This capability extends to embedding sub-processes within contracts, enhancing their adaptability and utility in complex business ecosystems. By automating these processes on a secure, decentralized platform, the LTO Network facilitates efficient collaboration and data exchange, leveraging the public layer for overarching security through distributed consensus and incentivization of nodes.

Distinct from conventional smart contracts, Live Contracts are designed around the practical needs of businesses, enabling not just the automation of financial transactions but the entirety of business workflows. Represented as Finite State Machines, Live Contracts are comprehensible to a broad audience, including those without deep technical knowledge, fostering greater transparency and ease of use.

LTO Network’s implementation of Live Contracts signifies a significant development in how digital agreements are conceived and executed in the blockchain domain. It empowers organizations to streamline operations, maintain compliance with regulations like GDPR, and pioneer new business cooperation models. This innovation positions LTO Network as a leader in the blockchain industry, offering a versatile, user-friendly platform for automating and optimizing business processes in a decentralized and secure manner.

Source: LTO Network whitepaper

Leased Proof of Importance (LPoI)

Leased Proof of Importance (LPoI) is a consensus algorithm utilized by the LTO Network, blending elements from both Proof of Stake (PoS) and Leased Proof of Stake (LPoS) systems to incentivize active participation and fair distribution of rewards within the network. This algorithm emphasizes a node’s engagement with the network, determining its ‘importance’ based on the frequency and volume of transactions it originates in addition to the tokens it holds and stakes. Such a system encourages node operators to not only invest in the network by holding tokens but also to actively use the network, thereby contributing to its vibrancy and security.

LPoI aims to address the centralization concerns in traditional LPoS systems, where the concentration of staking power in a few nodes can threaten network security and integrity. By requiring nodes to own a minimum percentage of the tokens they stake and rewarding them based on their network usage, LPoI naturally discourages centralization and promotes a more distributed and participatory ecosystem.

The introduction of LPoI represents LTO Network’s commitment to evolving its blockchain infrastructure to support more decentralized, efficient, and user-driven operations. By aligning token holders’ incentives with network activity, LPoI ensures that the most contributory participants are rewarded, fostering a healthy, active, and secure blockchain environment. This consensus mechanism exemplifies LTO Network’s innovative approach to blockchain consensus, balancing security with the desire for a dynamic and engaged community.

Source: blog.ltonetwork.com

Node Operators

LTO Network supports four types of node operators: Public, Anchor, Identity, and Workflow. Public nodes contribute to network consensus and validate transactions. Anchor nodes specialize in data anchoring, enhancing data immutability. Identity nodes are crucial for managing decentralized identities, ensuring robust authentication and data privacy. Workflow nodes are pivotal in facilitating decentralized business processes and automation, streamlining operations. Becoming a node operator involves setting up a node, staking LTO tokens, and adhering to operational requirements specific to each node type. Detailed documentation and community support are available to guide new operators through the setup and maintenance process, ensuring a smooth integration into the LTO Network ecosystem.

LTO Network Use Cases

LTO Network harnesses blockchain technology to offer versatile solutions across various sectors, providing a foundation for secure, efficient, and compliant business operations. Its unique features, including Live Contracts and a two-layer blockchain, pave the way for innovative use cases:

• Legal Document Authentication: LTO Network enables the secure and immutable storage of legal documents. Through anchoring document hashes on the blockchain, it guarantees the authenticity and integrity of legal agreements, certificates, and other important documents, simplifying verification processes.
• Supply Chain Management: By leveraging Live Contracts, LTO Network offers transparency and traceability across supply chains. Companies can track the production, shipment, and delivery of products in real time, enhancing accountability and streamlining operations.
• GDPR-Compliant Data Sharing: The platform’s privacy-aware design makes it ideal for organizations needing to share sensitive information while complying with GDPR. LTO Network facilitates secure data exchange, ensuring that personal data is protected and regulatory requirements are met.
• Decentralized Workflows: LTO Network automates and decentralizes business processes, allowing companies to create efficient, transparent workflows. This reduces reliance on intermediaries, lowers costs, and improves process integrity.

In conclusion, LTO Network’s innovative blockchain solutions offer significant benefits for document authentication, supply chain management, GDPR-compliant data sharing, and the automation of business workflows. Its approach not only enhances operational efficiency and security but also fosters transparency and compliance in a digital-first world, demonstrating the transformative potential of blockchain technology in addressing real-world challenges.

What is the LTO Coin?

LTO is the native utility token of the LTO Network, facilitating transactions and staking. Its maximum supply is capped at 500 million units, of which 426.5 million (85.3%) are already in circulation (April 2024).

LTO is integral to the LTO Network’s token economy, enabling various functionalities within its two-layered blockchain architecture. This coin is utilized across different roles within the network, from operational tasks to transaction payments. It occupies a key role among various stakeholders, ranging from those actively maintaining the network’s operations to those who passively support its infrastructure.

At the heart of the LTO Network are four distinct types of token holders, each contributing uniquely to the ecosystem’s vibrancy and stability. Integrators and Partners, the operational backbone, run nodes that validate transactions, directly engaging with the network’s daily functions. Clients interact with the network by using it for transactions, often running nodes themselves, which ties them directly to the network’s success. Passive Stakers, on the other hand, lend their tokens to bolster network security without actively managing nodes, benefiting from rewards while supporting the network’s infrastructure. Lastly, Non-active Holders, though less engaged, hold LTO tokens with a speculative lens, eyeing potential future gains without directly contributing to the network’s transactional or operational activities.

This diverse participation ensures a dynamic and robust ecosystem, with a target for most tokens eventually being held by active users, particularly Integrators, Partners, and Clients. This design not only incentivizes broad and active engagement but also underpins the network’s aim for a decentralized yet efficiently functioning blockchain suited for a wide range of business applications. Through this strategic token distribution and engagement model, LTO Network aligns incentives across its user base, fostering a sustainable and growing blockchain environment.

LTO Network has strategically distributed its token supply to ensure a balanced and sustainable ecosystem, fostering growth and security. The allocation spans various network stakeholder segments, from early investors to the team, advisors, and incentives designed to bolster network activity and expansions.

Token distribution

• Seed Sale: 14.34% of total supply
• Private Sale: 14.37% of total supply
• Public Sale: 7.33% of total supply
• Team: 18.75% of total supply
• Advisors: 4.41% of total supply
• Foundation: 11.03% of total supply
• Network Incentives: 11.91% of total supply
• Mergers & Acquisitions: 17.86% of total supply

Regarding token governance and financial allocation

LTO Network has utilized 70.00% of the 4.03 million USD (in EUR) raised from funding.

The allocation of funds is as follows:

• Sales and Marketing: 47.00%
• Software Development: 33.50%
• Administration and Other Expenses: 19.50%

LTO Network Ecosystem

LTO Network is creating a highly versatile ecosystem that integrates with various industries to enhance data integrity, security, and interoperability. This diverse ecosystem is further enriched through strategic partnerships and technological advancements, demonstrating LTO Network’s adaptability and potential across multiple sectors. The following are some of LTO Network’s collaborations reshaping the landscape of eClinical applications, the gambling industry, standardization certifications, and decentralized finance (DeFi).

eClinical Applications Through Triall

LTO Network marks a significant advancement in the eClinical space by partnering with Triall and integrating blockchain APIs with CDS’s solutions, creating the world’s first blockchain-powered eClinical platform. This groundbreaking collaboration addresses critical challenges in the global clinical trials industry by improving data integrity, auditability, and interoperability. Through LTO Network’s blockchain, Triall’s eClinical product range will generate verifiable proof of data, documents, and processes, showcasing LTO Network’s ability to meet the rigorous demands of regulatory frameworks while maintaining privacy.

Source: ltonetwork.com

Gambling with Les Ambassadeurs Casino

In a pioneering move, LTO Network and Sphereon have joined forces with Les Ambassadeurs Casino to introduce blockchain technology to the gambling sector. This partnership aims to enhance customer experience, safety, and compliance while reducing costs through verifiable credentials and decentralized identifier technology. The innovative solution allows for secure and efficient transactions, setting a new standard for the industry and demonstrating LTO Network’s flexibility in addressing the unique needs of the gambling world.

Source: ltonetwork.com

Standardization with NEN

LTO Network’s collaboration with NEN showcases its capability to secure and streamline processes outside the financial industry. By incorporating blockchain technology into verifying official certificates, this partnership enhances transparency and trust. The smart QR code solution addresses vulnerabilities in traditional certification processes, offering dynamic, verifiable certificates reflecting current validity and authenticity. This initiative exemplifies LTO Network’s utility in standardization and its potential to transcend industry boundaries.

Source: ltonetwork.com

Decentralized Identity with Proofi

Proofi, powered by LTO Network, revolutionizes KYC/AML compliance in the DeFi ecosystem by offering verifiable credentials for cross-chain identities. This solution simplifies onboarding, mitigates risk, and fosters trust among liquidity providers, dApp developers, and institutional participants. Proofi’s innovative approach demonstrates LTO Network’s commitment to solving real-world problems and highlights its crucial role in the broader adoption of blockchain technology in finance.

Source: ltonetwork.com

The LTO Network ecosystem showcases the transformative power of blockchain technology across various sectors. Through strategic partnerships with Triall, Les Ambassadeurs Casino, NEN, and the development of Proofi, LTO Network is not just a blockchain infrastructure provider but a catalyst for innovation, security, and efficiency in multiple industries. Its ability to adapt to different regulatory and operational challenges solidifies LTO Network’s position as a leader in the blockchain space, with a promising future ahead in creating value for organizations worldwide.

Is LTO a Good Investment?

The increasing demand for blockchain infrastructure among traditional companies could position LTO Network favorably, given its potential to serve various sectors with unique offerings. However, the emergence of “private” blockchain systems, like Distributed Ledger Technologies (DLTs), within many companies raises questions about the novelty and competitive edge of public blockchain solutions like LTO Network. While LTO Network offers distinct features such as data integrity, auditability, and interoperability enhancements, the actual impact and adoption rate among businesses accustomed to private blockchain solutions remain to be seen, necessitating a balanced view of its future growth potential.

How to Own LTO?

To own LTO, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then, you are ready to go through the steps to buy LTO.

News on LTO Network

Released on LTO Network’s official blog on February 29, 2024, a groundbreaking partnership with Scantrust aims to combat the $500 billion counterfeit goods industry. By integrating Scantrust’s Secure QR codes with LTO Network’s blockchain, organizations can now secure documents and high-value items with an immutable digital trail. This collaboration enhances product authenticity and supply chain transparency, offering businesses and consumers a new level of trust and security. LTO Network and Scantrust are setting a new standard in the fight against counterfeit goods, marking a significant leap forward in ensuring product integrity and consumer confidence.

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