LTO Network AMA with Rick Schmitz and Ivan Golovko
After their recent Binance Listing in February 2020, LTO Network joined the AMAroom to answer some questions and provide more knowledge on what LTO Network does.
Host: Thanks for taking the time for this special AMA.
Ivan: Pleasure! A lot of eyes on the project now, so we want to make sure everyone understand what we actually do. Setting the branding and the mission straight, as to say.
Host: Can you two first introduce yourselves? What’s your role and what’s the LTO network story with you two?
Rick: Sure, so Im Rick Schmitz, have worked in M&A at PWC and Deloitte — and started LTO Network with my CFO and CTO in 2015.
Ivan: I am Ivan — CMO [well, just a telegram bot!] focusing on marketing and community expansion. Sometimes jumping into product meetings, but mostly twitter/telegram, some investors relations, exchange topics, and so on. Basically making sure more people know about LTO Network and what it does — with the focus on actual products and token economy. Rick is the actual business-product god, so that’s where his time is usually spent. And company strategy, of course.
Host: In your own words, what is LTO network?
Ivan: Hybrid blockchain for organizations and B2B. Basically a business-developer tool for enteprrise solving the issues they have — and not inventing problems
Rick: We didn’t start with LTO Network with the intention to start a blockchain startup. It started as a centralized solution for businesses and governments to exchange data on processes on a P2P basis.
Ivan: Very different from futuristic solutions crypto usually pushes forward. We don’t have cute heterogeneous forests, but we have actual products and blockchain usage.
Host: What was the reason for the switch to a decentralized form with its own blockchain and token?
Rick: The blockchain came as a need later. There had to a way to share and secure data privately [which SHOULD NOT be don on-chain] while having this security. The security of the blockchain comes from distributed nodes, which are powered by economic incentives. So we combine the best out of the two worlds = hybrid
Host: What is the perfect client and their use case for LTO network, in your mind?
Rick: So every big corporate and government faces the problem of siloed data. They have their internal processes and software to get internal efficiencies, but when they collaborate outside of their organization they use email, phone and even fax to send each other processes updates and data (unstructured data). With LTO Network they can communicate structured data on the processes that run outside of their organizations. Everyone that participates benefits from data re-use and process efficiency.
Ivan: We focus on the B2B/B2C market, which actually uses blockchain more now than retail side. Therefore, during “bear market” LTO has been doing perfectly fine — and actually expanding
Q: Do you have any concerns regarding the possible regularization from the government and what that would mean for LTO?
A: We don’t, because we actually work with governments. We have supply chain use case with the Dutch government, a legal case with the Dutch Ministry, we work with ISO on TC307, and also NEN is our client and integrator. So there is a bunch of things governments are exploring and already using the blockchain for.
Example which is going into next stage quote soon: https://blog.ltonetwork.com/nen-lto-network-iso-standards/
Q: What is your long-term vision about the industry which LTO NETWORK is working at? Are you afraid some day there will be another project with more innovative technology can replace?
A: The thing with innovation is that it still needs users. While many projects battle on who made the best whitepaper — we bring businesses and users not just into the ecosystem, but have them buy LTO token for usage — driving cashflow into the network — and having this revenue go to stakers/nodes
Q: It’s too hard for a hybrid blockchain to coexist within each blockchain. How do you maintain integrity of LTO blockchain when dealing with two or more type of blockchains?
A: It is actually pretty good to be hybrid blockchain, as we can communicate with every blockchain that is integrated WITHOUT relying on oracles. LTO is able to process both on-chain as off-chain logic.
Q: As a developer I Know some coding and programming, and I saw LETSFLOW for dapps, can I build dApps on LETSFLOW? I see most of LTO work is Netherland, what’s plan for global expansion?
Q: While testing Proofi beta, I discovered that it only supports Google Chrome and Gmail. Do you have any plan in supporting other email clients and platforms in the future?
A: Yes we will support more in the future. Next one will be office365 integration
Q: LTO network has achieved major success in getting users to its platforms, reaching 1.2m users. my question is, how does LTO network make revenue/profit from its userbase?
A: We don’t just get revenue for ourselves — we are a crypto project after all. Our goal is driving revenue into LTO token. This is done via integrators and software providers using LTO — they just buy LTO and integrate into their own systems. We are also releasing products of our own, which will bring revenue to us — and also cashflow into token. And also open-source adoption starting completely new products. Every product we make results in more revenue for LTO stakers and nodes. That’s our goal and current plan that is already working
Q: LTO claims to be GDPR compliant, can you give some more detail on how this is possible and whether attempting to be compliant will slow down growth and development? #ltonetwork
A: No business can avoid GDPR compliance, so they have to have a compliant solution. https://blog.ltonetwork.com/lto-network-blockchain-gdpr-made-possible/
Q: Please explain the difference between LIVE CONTRACTS AND SMART CONTRACTS? How does Live contracts work
What’s ECOSYSTEM V, how can I join in and what are the advantages for me?
A: Live contracts can interact with systems outside of the chain- can both receive and send data — whereas a smart contract can only receive and execute.
Q: How are you going to implement your product into the corporate environment? What will motivate the transition of business processes to blockchain?
A: We are making it easy. Not using blockchain as disruptive, but using it as supportive. A land-and-expand approach: https://blog.ltonetwork.com/blockchain-trends-2020-vision/
Q: LTO made a massive airdrop recently on binance by depositing could this impact on LTO Price (dumping) ?
A: The release of other token portions has been slowed down, and the airdrop has been unlocked [1/3] already for over 3 days. There is no even medium-term worry in that regard. We bring more usage and clients into the network who buy and stake-use LTO to pay for nodes, increasing staking ROI ORGANICALLY. Our ambitions are far beyond a little airdrop.
Q: If customers request a business case / return on investment (ROI) to implement the blockchain, what general aspects do you draw their attention to demonstrate the true value of the #LTOnetwork?
A: We are showing them who much EUR/USD they can save on implementing LTO. So we make a business case that is solely based on ROI. That is a much easier pitch. We are saving 14 euro per process for the ministry of transportation on international waste transportations between Netherlands and Belgium. That saves 7.000.000 per year! And the investment is a fraction of this amount
Q: Currently, there are many strong developing projects, so why should we choose $LTO and not others? What in #LTO makes you more confident than other projects?
A: We are not competitors with 99% of other chains, we are targeting the business world and have unique value propositions. It’s ready, it has been proven, it’s easy to integrate, and it has upgradeable features. While others focus on disruptive technologies — we use blockchain as supportive. This bring more value to the network and LTO token
Q: How do you keep the transparency within the ecosystem(coding and blockchain proofs) when dealing between other consensus chains?
A: This kind of relates to hybrid, right? So hybrid doesn’t mean we connect all chains among another — we don’t do coin-interoperability. We connect different systems to stremaline data usage and secure it. For that, we have the private layer event chains and linked data — and public layer with LTO coin is the security layer in this equation. Sure, we can connect other chains, but for clients they are irrelevant actually.
Q: I’ve been following this website tracking LTO usage. ltonode.com/transactions Very impressed with it’s continued increase throughout the year. What do you attribute this consistent growth? New customers? More usage from prev. ones?
A: Good one! For now there has been more usage from launching partners, but we were a bit constricted with some stuff [you saw it 3 days ago] so we couldn’t announce a few clients we had. So now I am sitting on a big bag of news that we want to properly community and bring to the masses in the next few weeks: also having them contribute more transactions over time!
Q: LTO community is special and a big factor was your approach to the community building. Can you tell us what you did to achieve this level of community engagement?
A: We focus ONLY on substance, facts, use cases, and of course — how LTO token has value appreciation. This led us to cementing a core community that understand all the aspects of the technology and business. They help educate new members, and even help building tools and bringing clients. Substance helps us tap into real network effects 🙂
Q: 5 years since it birth and 1 year after Mainnet launch, LTO keeps delivering especially with it free listing on Binance. How was it possible? Can you tell us your winning recipe?and do you see sky as the limit or just the stating points?
A: We just have focussed on delivering products and network growth. That we will always focus on. Other like Binance noticed this and valued our progress. Really grateful for that. We are not done 1 year after Mainnet. We are just at the beginning.
Q: What’s the geographical focus of LTO network? I’ve noticed it’s mostly Europe. What’s the plan for getting clients outside Europe?
A: For now it has been largely Europe, mainly Netherlands. It might seem like it’s small, but huge corporates are all here. In fact, become the biggest in Europe would be super good — and we are getting there gradually. many companies tries to expand everywhere at the same time, and then don’t succeed anywhere. Social scalability is even harder than TPS 😉
Q: Congrats to LTO Network listing on Binance! However, what’s next ultimate goal after listed? Show us some exciting plans.
A: A new updated roadmap coming up in a few hours — this was just the start, we have so much planned 😍
Q: The LTO team seems to overall have relatively good business development experience, but in my opinion not so much on the Tech /Development side. The concern as investors we normally use to raise with projects was the complete opposite(vice versa) to much Tech experience and to little on the business side. My question to you is, do LTO have a strategy in place to either attract or appoint more/better developers in the short term?
A: Very good question actually. Indeed, the focus on whitepapers has passed it’s time in 2018. Now it’s about revenue and real businesses, and driving cashflow instead of aircastles. We deliver today, as you say, and this is what we are strong in. BUT! We are not stopping here at all. Apart from expanding the business-government usage, we are also now doing more open-source stuff. Hackathons? Yes. But not crypto ones. We are now partners with the largest hackathon in the world — Odyssey — and strongly focusing on making more devs join us in 2020 🙂
Q: Why did LTO choose a Non-Inflationary staking ROI over a High-Inflationary staking ROI? and what’s the difference between the two? #ltonetwork
A: Because inflationary protocols are usually a one-way into rektness. But they have no other choice because their usage is at 0, if you check across the board except BTC and ETH.
We are proud to be in top-25 in usage, and this is really just a low level for us, and so much more growth planned ahead 🙂 https://blog.ltonetwork.com/staking-and-leasing-lto-network-node-guide/
Q: Why would an enterprise use LTO Network solution instead of building its own blockchain or use existing ones like Hyperledger or Ethereum for example?
A: We are definitely smaller, however more clients value the approach of a hybrid network. With LTO Network you can even start centralized and gradually add more partners to collaborate with you via blockchain technology. With Hyperledger it is an all or nothing game. You need to form the consortium upfront and agree on everything that is going to happen. Our governance is taken care of on a process level. That is much easier to join and change and matches better how real world business is done.
Ethereum faces a problem with GDPR that it needs to solve first. Big corps are very afraid of data privacy these days
Q: Where does LTO sit with web3?
A: We share the Web3 vision, but see a different path to its adoption.
First B2B and govs who want the tech -> then move further into data sovereignty and so on.
Check out the second section here: https://blog.ltonetwork.com/blockchain-trends-2020-vision/
Host: Thanks for the time @rickschmitz and @ivangbi!