Blockchain Project Review: LTO Network:7.0 Hybrid Blockchain For Decentralized Workflows
Original article by EVALUAPE
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LTO Network is a decentralized enterprise business process automated solution platform. Combined with GDPR and data privacy compliance, LTO enables B2B to collaborate on an equal basis.
1) The project has cooperated with a number of companies to build application scenarios and has received support from the Dutch government.
2) The project development progress is reasonable and the ecosystem construction is active.
1) Enterprise-level blockchain service field is highly competitive.
2) The business construction of the project is excessively centralized.
On the enterprise side, the B2B industry has the following problems: lack of “trust flow”, human error, low efficiency, compliance issues, EU GDPR and US personal information protection compliance issues. At the same time, there are many business processes in the practical application of blockchain that require specific deployment and management, some even need to be completed offline. Traditional public chain products lack relevant ecosystem supporting services, so they cannot meet the needs of enterprises for tools. BAAS (blockchain-as-a-service) uses the blockchain architecture to provide an ecosystem environment to support developers’ business development and operational support. At the same time, the enterprise process is automated while sacrificing certain decentralization. Its form basically includes private chain, consortium chain tool or hybrid chain.
There are many competing products in the enterprise BAAS field, including Aergo, PDX, Cognida, etc. Aergo provides DPOS public chain, side chain, supporting development tools and customized options for enterprises. PDX provides platform and application services for public and consortium chains, and it also provides selective configuration for smart contract, data and code, which is more suitable for enterprise configuration. At the same time, multinational governments and traditional Internet giants like Microsoft and IBM are also developing enterprise solutions using blockchain.(6.5/10)
As a blockchain tool, LTO Network is committed to building B2B infrastructure and ensuring equal cooperation between enterprises in a transparent and secure manner. It can help enterprises and government agencies to build an automated “trust flow” and operate in a transparent, secure and decentralized manner, while protecting data privacy and GDPR compliance.
LTO can represent the workflow as a deterministic extended finite state machine (FSM) that simulates the logic of the process. It uses private chains (opening a new chain for each process) to share information between the parties and publish them on the chain. Organizations can run these workflows in a decentralized manner, enabling parties to participate with their own nodes. Based on the LPoI consensus, collaborators can share information on-chain or off-chain and provide validation for the information. These decentralized workflows are called Live contracts, and in the process, multiple agencies can still collaborate.
Token economy: Within the LTO Network token economy, the private chain does not use tokens. There are 4 types of token holders in the public chain:
- Integrator & Partners — stakers in network, running nodes to validate transactions. They can act on their own behalf or on behalf of their clients;
— Clients — actors using the network and paying transaction fees;
- Passive stakers — actors that will stake their coins (potentially through a lease) and run a node to validate transactions;
- Non-active holders — non-active participants in the network simply holding tokens.
LTO Network’s public chain structure takes the economy factors into account. Tokens are used as a node incentive rather than a token of business access. The use value of the token is separated from the holding value, and the holding incentive is formed on the public chain. The architecture and operation of the private chain is mainly centralized. (6.5/10)
In terms of technical architecture, LTO is divided into public chain layer, private chain layer, application layer and UI layer. The UI layer includes a UI application that interacts with the application layer. LTO creates a one-time private chain for each real-time contract, ensuring that all parties can be updated to the latest historical event and have a common state, in the mean time, nodes can simultaneously save and process multiple contracts. At the public chain level, LTO will anchor the hash value of the event on the private chain, so that people can verify the existence of an event without recording all the events that occur, reducing the network delay in the application.
LTO’s global public chain consensus combines the WAVES lease proof (“LPoS”) concept with NEM’s Proof of Importance (“PoI”) concept. Using the Leased Proof of Importance (LPoI) consensus algorithm, by renting tokens, the holder passes the permission of generating the block to the selected node. The combination allows people who hold a small amount of tokens but do not want to run nodes to receive a reward by renting tokens.
The technical code for LTO is now open source https://github.com/legalthings), and a total of 5 people have uploaded 91 pieces of code (as of February 14, 2019). The code is updated frequently. The development progress of LTO is quite reasonable. The main network has been launched on January 16, 2019 and the 1.0 version of the wallet has been released.
The LTO architecture combines the security of the public chain with the privacy and compliance of the private chain. Therefore,the blockchain tool for the enterprise do not need the third parties to process the stored data, avoiding the disclosure of private contracts, and at the same time, there will be anchor timestamps and verifiable history on the public chain to provide data integrity and security. Although the public chain is built by the project team, the consensus and the block-out algorithm are based on the consensus algorithm of Waves, thus the security is verified. (7/10)
The official website disclosed 8 team members, about half of whom are technicians. The core team lacks professional talents in the blockchain. However, given the team is the original team of Legalthings and there are enough talents in legal and auditing field, it can be considered as a mature team.
Rick Schmitz, co-founder and CEO, has worked in tax and commercial auditing at Deloite and Pwc since 2008. In 2013, he founded online Dutch company establishing firm Firm24.
Arnold Daniels, co-founder and architect, has been a software developer since 2001. He was the chief software engineer at Cloud9. He is highly active on Github and contributes most of LTO’s private chain code.
Martijn Migchelsen, co-founder, COO. He has been a corporate financial consultant for the technical team at PWC for 7 years. He is also the co-founder of Firm24 in 2013 and the co-founder of LegalThings.
Sven Stam: Project CTO, focusing on distributed systems such as Arnold. There are technical research consulting experiences for developing mobile applications and artificial intelligence for communication companies. (7/10)
Twitter: 3879 followers, 330 tweets; Medium: 331 followers; telegraph: 24,160 people(as of February 14, 2019). The community is pretty active. According to Similarweb, the visitors of its website are mostly come from Russia. The LTO official website has introductions and whitepapers in four languages, the project attaches great importance to international operation.
LTO Network has cooperated with the Ministry of Commerce and the Ministry of the Environment of the Netherlands. The successful applications include garbage transportation projects in Belgium, Germany and the Netherlands. The LTO Network’s automation contract is also used in many other areas, such as insurance, healthcare, supply chain and legal contracts, to eliminate operational friction and cut costs between entities. In terms of house leasing, LTO Network is working with corporate real estate agents such as M7, Deloitte and Merin to create automation contracts centered on the lifecycle of the lease agreement. In terms of insurance, LTO Network is working with DEKRA to develop an automated third-party data processing flow system that meets the GDPR standard.(7.5/10)
LTO’s positioning is not a technologically innovative public chain, the project integrates blockchain into the day-to-day business, providing collaboration solutions for businesses and governments, and protecting data privacy as well as achieving GDPR compliance. The innovation of its product architecture lies in the combination of LTO public chain and private chain, using private chain to build business scenarios, and anchoring the system on the public chain to maintain data integrity, while adding the token economy and incentive mechanism so as to maintain the public chain nodes, thus realizing the autonomy and decentralization of nodes on the public chain
In the application of enterprise blockchain, it is difficult for technology to have breakthrough innovations, and there are not many barriers. Therefore, the realization of partners and implementing scenarios has become the main competitiveness. LTO has reached strategic cooperation with many well-known blockchain projects, traditional industries and Dutch government departments. The progress of the project from technology development to adopting scenarios has advantages, and there are certain prospects in the future.
Hype Score: Medium High
Total Score: 7.0
All information in this article is provided for reference only and does not constitute investment advice.
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