LTO Network (LTO)
As a Dutch project with a history spanning 10 years, LTO Network stands out as a unique hybrid blockchain platform focused on compliance. It aims to collaborate with governments and offer real-world applications through its own hybrid architecture.
Let’s take a look at how it plans to achieve this and how you can participate in securing the network while earning rewards in the process…
LTO Network is a European-based hybrid blockchain, designed to integrate a dual-layer architecture to cater to business-to-business applications.
The platform finds practical application in several areas including decentralized workflows, authentication of data and documents, supply chain management, identity verification, and the management of digital collectibles.
Its network is employed globally and even at institutions such as the UN and the Dutch government, which we’ll discuss later in this article.
LTO Network Podcast EP02 – Real World Assets with Rick Schmitz & Pankhuri Bansal
LTO Network began as LegalThings One, a project initiated by Firm24 in 2014. It transitioned into the blockchain arena in 2017 and was subsequently rebranded as LTO Network, with its mainnet launching in January 2019.
The team behind LTO Network is led by CEO Rick Schmitz, who has a background in private equity and mergers and acquisitions; CFO and COO Martijn Migchelsen, who specializes in corporate finance; Arnold Daniels, the co-founder and lead architect with a strong track record in open-source development; and CTO Sven Stam, who holds a master’s degree in artificial intelligence.
This review of LTO Network (LTO) was created for informational purposes. This article is not intended for promotion.
A major focus of LTO Network is the ownership of real-world assets on the blockchain through tokenization. For this, its hybrid blockchain and architecture are suited for tokenization.
CEO Rick Schmitz explained that a hybrid blockchain is essentially a blend of private and public blockchain features. LTO Network’s hybrid model is designed to meet the specific needs of businesses and governments that are hesitant to completely overhaul their existing IT infrastructure. Think of the GDPR compliance, which is/will be mandatory in Europe.
LTO Network is not limited to any specific category of assets. It can facilitate the tokenization of high-value collectibles, real estate, shares, private equity fund interests, and even cryptocurrency funds. It uses Ownables for this.
Ownables are LTO’s custom token standard for packaging real-world assets into unique digital collectibles anchored to LTO’s blockchain. Each Ownable contains all necessary metadata about the tokenized asset.
Unlike traditional NFTs, Ownables are stored securely in any chosen environment—be it locally, on a cloud file system, or directly in a wallet.
Blockchain ownables represent a modern form of asset ownership. “Just like the physical shares of the early 1900s, digital ownables in your blockchain wallet signify true ownership.”
Ownables can be considered an evolution of NFTs, incorporating images, media files, digital certificates, contracts, and even proof of ownership into a single, secure entity within a user’s wallet.
Proofi, on the other hand, handles know-your-customer (KYC) checks and verifies identity/ownership for RWA issuers and holders.
It wants to alleviate the significant costs and complexities associated with identity verification processes, where companies spend billions to comply with regulations like GDPR and often experience high drop-off rates due to the cumbersome nature of KYC/AML procedures.
Proofi allows users to complete KYC just once, and then utilize that verification across various platforms without repeatedly submitting personal information. Here LTO collaborates with Chainlink.
EQTY is the latest addition and is a manner to fractionalize Ownables into smaller units and setting up decentralized liquidity pools. This lets owners trade RWA fractions on DEXs and marketplaces and lets the two form a decentralized finance branch.
LTO has a partnership with the United Nations that involves implementing a blockchain-based land registration system in Afghanistan, a project that aims to reissue land titles in regions where records may have been lost or disputed due to conflict.
Another partnership is this one with IBM that has led to the integration of blockchain with artificial intelligence (AI) through IBM’s Watson technology.
One notable project involves the Dutch Ministry of Justice, which aims to expedite the processing of petty crimes such as shoplifting or bike theft. By leveraging AI and blockchain, the system can suggest sentencing based on historical data, thereby speeding up judicial proceedings. Really futuristic.
Scantrust and LTO Network also formed a partnership where Scantrust’s Secure QR codes with LTO Network’s blockchain provide a dual-layer security system and ensures the authenticity of items is recorded on-chain.
I could go in-depth on their technology, but would rather focus on their current use cases. And, there actually are a lot of use-cases that can be looked into at: LTO Network – Overview of use cases
The LTO Network has released the Universal Wallet app for iOS and Android. This digital wallet enables ownership of tokenized RWAs through LTO’s Ownables technology.
With the Universal Wallet, users can perform a variety of tasks:
The LTO Network Explorer is an online platform where users can search and view all activities happening on the LTO blockchain. Whether you are looking for a specific address, transaction ID, or block height, the explorer makes it easy to obtain detailed information about the network’s operations.
Using the LTO Network Explorer is straightforward. Simply enter an address, transaction ID, or block height into the search bar to retrieve relevant data regarding transactions and block details.
The LTO token is utilized as a utility token within the network, where clients use it to pay for anchoring data onto the blockchain. It also functions as the medium for transaction fees, which includes gas for data anchoring and token transfers.
The platform employs a unique tokenomics model similar to that of Solana, where tokens are minted for each block and the amount decreases over time. Additionally, 50% of transaction fees are burned, (on each transaction the network leads to the burning of 0.10 LTO as well), and the other 50% are distributed as mining rewards.
The network features a maximum supply cap of 500 million LTO tokens, of which approximately 434.725 million were in circulation by the end of December 2022.
LTO tokens were initially made available to the public and private investors through sales.
The LTO Network has implemented several strategic measures:
Team: 18.75%
Merger & Acquisition: 17.86%
Private Sale: 14.37%
Seed Sale: 14.34%
Network Incentives: 11.91%
Foundation: 11.03%
Crowd Sale: 7.33%
Advisors: 4.41%
Fully vested at Token Generation Event (TGE) in January 2019:
Approximately 77.55% of tokens have been unlocked, with the next unlocking event scheduled for July 2025.
LTO uses the traditional Proof of Stake algorithm of Leased Proof of Stake (LPoS) which allows LTO token holders to support the network by staking their tokens, either directly by running a node or indirectly by leasing tokens to a node operator.
In the LPoS system, your staked tokens proportionally represent your chance to earn rewards based on the network’s transaction fees. For example, if you stake 1 million LTO tokens and the total staked amount in the network is 100 million LTO, you would earn approximately 1% of the transaction fees.
Leasing LTO tokens to a node operator is an excellent way for those who prefer not to delve into the technicalities of running a node. Here is why leasing is beneficial:
Leasing LTO tokens is straightforward. Here’s how you can start:
For an extensive manual visit our LTO Leasing Network manual.
Since its inception as a blockchain entity, LTO Network has processed over 80 million transactions, helping businesses worldwide secure data and manage sensitive information.
In their time of existence, the LTO Network is recognized for longevity and long uptime, which is particularly notable in a blockchain industry often filled with ambiguous and overly ambitious projects.
With their recent developments such as the newly developed Solana Bridge that will integrate LTO Network’s Ownables technology and EQTY platform, and following the success of the Universal Wallet, their attention shifts to the EQTY platform.
2025 will see the launch of the EQTY platform, a comprehensive ecosystem supporting the complete lifecycle of RWAs on the LTO Network. So we are eager to watch their roadmap unfold.
Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.
Start learning about crypto at YourCryptoLibrary
