LTO Network Telegram AMA

Summary of the Live Telegram AMA held in the dbcrypto community Telegram chat on 2 March 2019.

LTO Network’s ERC20 token has been enjoying significant positive price action over the past weeks, as the community learns more about this promising project. Today we welcomed three of the core team from LTO Network into the dbcrypto Community Telegram for a live AMA.

Joining the discussion were:
• Rick Schmitz — CEO
• Arnold Daniels — Lead Architect
• Ivan Golovko — Strategy & Investor Relations

AMA Question Highlights

LTO has been widely discussed over the past month so we look forward to hearing from the team today— Daniel [dbcrypto]

Thanks for inviting us to to elaborate on LTO network — Rick Schmitz

Telegram user lordboulder
Hi Rick, thanks for the AMA. What can we expect of LTO in the next ±6 months? What is the goal for the next ± 6 years?

Rick Schmitz
Hi Daan, so our strategy focuses on adoption of the network. So short term (6 months — 2 years) is as many as transactions from clients as possible.

The best way to measure our success (or valuation) is through the number of transactions on the platform.

Telegram user lordboulder
Thanks. But what to expect in this sense? I am sure we all hope for millions. But what would be realistically reachable?

Ivan Golovko
We set out for 15 million transactions monthly at the end of 2019, but of course this is a very ambitious goal. However, with adoption it works like a snowball: if we get a couple of big integrations, then the rest will be easier to expand.

Rick Schmitz
Yes, our goal for 2019 is 15 million transactions/month. We are on track for making that happen.

Telegram user ralphboy95
Any Exchange listing coming up?

Ivan Golovko
We are in touch with a few exchanges, but we do not want to lie about these things nor do we announce our “client leads”. If something is production-ready, we announce it. Nothing like “oh we are in negotiations with xyz…” — this sounds misleading. We are aware of the global token holder expansion and higher volume support — we want that too. But for now the best thing community members can do is to participate in the network: staking, leasing, helping with marketing and business development. We know how exchanges work, they want users and liquidity, especially now that very few projects have that. Giving exchanges $500,000 in tokens = they dump on our community. So then it becomes counter-productive. Good product and good communities get through anything anyway!

So in short: yes we are in touch, we are actively working on it. But we only aim for the best ones, so it takes time. I just want to emphasize that the narrative of “big volume exchange FOMO” of 2017 is pretty much dead, check the recent listings. We need to work together on adoption, and anyone can get involved in that! Because what drives the value is not PnD, but usage.

Telegram user Ymir
What’s the tokens true purpose?

Arnold Daniels
Tokens are a requirement for a permissionless network. It defines it’s value allow parties to join the network by buying in and from there be truly part of it, including making decisions. The weight for voting on a network change is decided by the stake you have on the network. Additionally, tokens create the dynamics where users of the network pay proportionally to use through fees where network maintainers benefits from this.

Daniel [dbcrypto]
Guys, I want to ask about your token dynamics at the moment. It’s obviously unique how you have the ERC20 and mainnet — non-tradeable — components. Are you happy with the path you took with the token? I’ve actually spoken to many people to discuss this and they weren’t aware of this dynamic of switching back and forth with the ‘Troll Bridge’.

Ivan Golovko
So far yes, the bridge troll is a very cool addition, it is complicated — but education is key, we do not go an easy route!

Telegram user Rocketdoge89
Have you guys considered the possibility of keeping the Troll Bridge permanent after the 6 months has passed to encourage coins to remain on mainnet?

Ivan Golovko
If we were to tamper with the troll bridge, that would put us under a bad spotlight. We cannot just be “inventing” new involuntary conditions.

Telegram user lordboulder
I think it is kind of strange that ‘using’ the LTO network now is relatively cheap. But as LTO becomes more expensive it becomes more expensive to use the network. Of course, the anchoring fees can be lowered but it seems you have kind of a ‘range’ in which price seems to be OK as it is still cheaper compared to alternatives. But how do clients perceive this? Do you get any feedback on that as it is ‘unstable’ to them?

Rick Schmitz
Good question: If the price of LTO goes up, the nodes will decide to lower the amount of tokens needed for a transaction.

Otherwise they would price themselves out of the market.

Arnold Daniels
We encourage clients to have a large enough stake that a major portion of the fees are covered by the node rewards.

Telegram user lordboulder
How will LTO expand in the future as regarding team members. Growing a company can be hard. Growing to fast is not always good. Will you expand to other countries? What will be the primary focus? Growing the team in the Netherlands or expand to other regions?

Ivan Golovko
Good one! Quick expansion is never good. I think Rick can give a better reply as the CEO, but here is a reply from the previous AMA:

As for team expansion to other geographical areas, the US would be the first step for us. As the solution progresses, we will not contain ourselves within any boundaries to make the solution globally widespread! It’s probably good to point out that we have experience with team scaling: it has to be gradual and at a good pace. Hiring dozens of people in a short period of time leads to a complete mess — Rick Schmitz

Telegram user lordboulder
Will there ever be a ‘non-browser’ wallet for LTO? Maybe ledger connectivity? Did I miss news regarding this?

Ivan Golovko
Ledger we have connections to, but it’s usually very costly to have mainnet integration. If you can eventually keep your ERC-20 LTO, then it does not make too much sense in the short-term to have double integration.

The community is working on a non-browser wallet, and you can already use Trust Wallet for ERC-20 and we will try to work on mainnet LTO integration too.

Telegram user bm_nJoi
If the US is an early target for LTO expansion, how does the team see that market given its prior issues?

Other major projects have been cited looking for expansion into the US, is there anything driving that toward being more possible now or is the SEC still just too terrifying to want to deal with?

Rick Schmitz
The US market is not something that we are looking into. We are doing business with major corporations there already. Through integrators we designed a way to not bother them with tokens. So that mitigates the SEC issues. Besides that. I think we have a really strong case not being seen as a security under US law

Telegram user Dmitri85
When will integration of IoT devises be possible?

Rick Schmitz
Already is done actually. The weight bridge system of Indaver (one of EU largest recycling companies) has attached their IoT bridge to LTO network.

Telegram user Dmitri85
Will there be integration with distributed data storage like IPFS?

Arnold Daniels
Probably not. You can’t really store private data on IPFS. Erasing that data is outside of your control, which is in violation with GDPR.

Telegram user VNITXQ
How did the community bring you new opportunities as a business and how did you utilize these opportunities to build the LTO Network?

Furthermore, how much does the project rely on its community in the sense of staking/nodes etc. for its future prospects, both for adoption and profitability?

Also can you tell me anything about the cash flow of LTO as a business?

Ivan Golovko
Community runs nodes. Community is decentralized supply. This is ESSENTIAL to network security. This is why we attribute so much time and effort to our community.

Rick Schmitz
Yes, we LTO sell our technology through integrators. We generate revenues from that and projects we actively engage in (NOTE: only when we think these might end up in a production worthy business).

Telegram user Reinekcaw
Hey, thanks for having this chat with us, my question is how big of a company can you support on its workflow and automation for example can the network handle, a company like Nestle?

Arnold Daniels
On the (private) event-chain, yes. This is fully decoupled horizontally scalable and can handle any size (in theory).

The public network is optimized for anchoring. A single user shouldn’t overload the network. If that’s a risk some ‘on-node’ optimization can be done to prevent this.

Telegram user ONNOVDG
Who is your biggest competitor at the moment?

Rick Schmitz
For decentralized workflows, our layer 2 solution it is Corda. For our layer 1 solution it is Factom.

Ivan Golovko
We have 2 layers, 2 solutions.

Layer 1 = decentralized notary = Factom, Tierion.

Layer 2 = process automation = Hyperledger, Aergo, R3.

LTO Network SWOT Analysis: view original

Telegram user Milensky
In terms of mass adoption where do you see LTO in 2019–2020?

Arnold Daniels
Anchoring should become a much more common method of securing data and documents and we’re aiming LTO Network to be the de facto choice for on-chain anchoring.

Telegram user cryptojay707
Putting ethos aside how can you convince enterprises to give up control to their network or being in a network where they don’t have control?

Rick Schmitz
They are actually in control as they are able to configure the private layer and consensus and who they invite on a process as they seem fit.

Their permissionless layer (anchoring) is there to create immutability on the data that is flowing through those private chains.

Telegram user cryptojay707
To confirm it’s using Hyperledger as the permissioned/private layer business network then anchoring the Hyperledger (layer 2) to the Bitcoin network (LTO network).

Ivan Golovko
Nope, not at all! NO ONE has what we have. The FSM (Finite State Machine) modelling toolkit. That’s not what any other project/company even has access to.

Arnold Daniels
No not really. Permissions are defined in the contract rather than network wide. Point is that you can create ad hoc collaborations, each time specifying (different) rules.

Rick Schmitz
No, a little different. Our workflow is executed on-chain. All parties that are involved are notified on state changes and data being shared in those private workflows (layer 2). As most of the time only a few parties (thus nodes) are involved we need a second layer of data security to safeguard immutability and anti-tampering of data.

We do that through LTO Network public chain (layer 1). Hyperledger is a jack of all trades (distributed hash table only presenting end results)

Telegram user wittaz
I read that you work with Dutch and/or Belgian governments. Any word on that? Where is the press release on those announcements? Can’t find much about this.

Rick Schmitz
This is a project that is next level in terms of efficiency gains and reduction in process time. Reports published by the involved governments will be released soon.

Telegram user R1ZZ0
Have you been speaking with any other governments after the success you had working with the Dutch and Belgian governments?

Rick Schmitz
Our integrator that is managing this project is in contact with 3 other jurisdictions. They are looking closely at this project. If this succeeds it is going to roll out to the rest of the EU.

Telegram user Woehoew
Whenever you have meetings with potential clients, do you notice that crypto is slowly being adopted by companies?

If you compare it with a few years ago, are they influenced by news about crashes, hacking etc.?

Ivan Golovko
Good question. Crypto as an asset? No, clients do not care much about it.

Crypto as a blockchain, as a cost-saving solution? YES, A LOT.

This is why we do both: an asset guaranteeing a secure network, and a toolkit doing cost savings. Hybrid architecture!

@rickschmitz Guys thanks for having us. I am off to bed. Tomorrow is an important day again! PS. Keep watching network traction in the next couple of days!
@IvanGBi Thank you. Awesome questions, we are always around!
Thank you to Rick, Arnold and Ivan for joining us for this highly anticipated AMA. The LTO community is extremely strong and growing as you continue to make more real-world traction. I hope we can have a part II in the future when you have made more progress with LTO, thanks — Daniel [dbcrypto]






Please note that some questions and or answers may have been edited to account for grammatical errors and appropriate presentation. This summary does not necessarily include all questions asked and answered during the event.