How LTO Network Shows B2B Adoption Using Metrics That Matter

A public-private blockchain with its sights firmly set on real-world use cases.

How LTO Network Shows B2B Adoption Using Metrics That Matter

Key Takeaways

  • LTO Network is an enterprise-grade platform that enables trustless collaboration between businesses.
  • It provides secure and compliant digital transaction management services.
  • Currently, it ranks in the top 20 blockchains by network activity.

Share this article

For a while in 2017 and 2018, enterprise blockchain was all over the cryptocurrency press, touted as a solution for every problem from climate change to world hunger. Apart from these impossibly high expectations, a significant problem with enterprise adoption of blockchain was most platforms weren’t yet in a state where businesses could actually use them. 

Nevertheless, blockchain technology does offer vast potential to enterprises, particularly in the area of collaboration across multiple parties, automation, and data management. LTO Network is one project that’s spent the last few years focusing on developing its platform to serve realistic, real-world use cases in the digital transaction management space. 

By focusing on development and deliverables, LTO Network is now able to demonstrate 11 live use cases, with 16 more in the pipeline. Furthermore, it takes an intriguingly transparent approach to how it measures its own success. 

How It Works

Using public blockchains presents a concern for many enterprises, who feel that there’s too much risk involved with allowing anyone to see their confidential data.

In Europe, there is also the added consideration of the GDPR, which puts a compliance responsibility on companies, including the ability to destroy or delete data. 

Therefore, LTO Network operates as a hybrid public-private blockchain, by segregating public network consensus from data sharing. The public layer is decentralized and enables anchoring for document notarization and timestamps.

It runs on a “Leased Proof of Stake” consensus, whereby any LTO token holder who prefers not to run a node and stake LTO can lease another node, similar to delegating. 

The private layer enables customization to client requirements and handles process automation and data exchange. 

Smart contracts on LTO are called “live contracts,” and they’re human-readable even for non-technical users. 

Use Cases of LTO Network

When LTO talks of use cases, these aren’t theoretical applications – they’re already live. Various operational IT companies are using LTO as part of their solutions for real-world businesses.

As of June 2020, 11 use cases are demonstrating LTO Network’s utility. Here are a few examples. 

Capptions is a company that makes use of LTO Network’s anchoring service for providing documentary evidence of inspections. The company has 80+ enterprise clients and over 20,000 users. By using LTO Network, they can capture inspection data that are verified using a digital signature. 

SignRequest is a document signing app that also makes use of the anchoring feature of LTO Network. It handles over a million business documents each year. By using LTO, each signature is timestamped, versioned, and independently verifiable in case of any dispute. 

ScanTrust delivers smart QR code services to clients, including ExxonMobil and Unilever, wanting better transparency in their supply chain management. It uses LTO Network to record QR code data on the blockchain, making it tamper-proof and eliminating the need for paperwork. 

LTO Network is also involved in a collaborative effort with IBM and other parties to collect environmental data onto the blockchain to make it transparently available and tamper-proof. The solution will be integrated with audited IoT devices for collecting the data. 

The company has three more use cases announced and about to go live. There are another 13 in production, of which five have already been announced. 

Token Burn Mechanism

It would be fair to say that LTO Network doesn’t have much in common with DeFi applications such as Synthetix or Aave. However, the company has looked to these projects to determine the best value capture model for its LTO token. 

In doing so, it’s developed a deflationary asset burning model for the token. Under this model, the company is proposing to change its transaction fee structure. Currently, clients pay a fee of 0.25 LTO tokens to stakers.

LTO is proposing to increase the fee charged to 0.35 but to burn the increase of 0.1. However, the burning is a dynamic feature that can be adjusted by a network vote in case the LTO price goes up high enough to deter users. 

By introducing this burning mechanism, LTO has projected that it can deliver a 50% increase on its price-to-earnings ratio. 

Measuring Success

Measuring the success of a blockchain project has always been something of a challenge. Many take the token price as the key metric. The issue with this is that it doesn’t account for speculative bubbles, or necessarily reflect any kind of real-world value such as adoption or utility. 

LTO Network measures its success through transaction fee revenue generated by network users. The project operators argue that this is the only metric that shows the product usage and economic potential for future viability. 

By this measure, LTO Network generates some impressive revenue compared to other blockchains. In the first four months of 2020, it took more in transaction fees than was paid out in BSV, ETC, or XRP. 

Based on the 11 use cases currently live, LTO Network generates an average of 40,000 daily transactions

With the use cases also in the pipeline, the company believes that it can more than double this to 90,000 transactions by the end of 2020. 

In terms of network activity, LTO Network ranks in the top 20 blockchains, according to Blocktivity.

This puts it on a par with VEChain, which is perhaps one of its main rivals in addressing the enterprise blockchain market. 

LTO Network Summary

LTO Network is working hard to demonstrate its capabilities for delivering robust, real-world solutions enabling businesses to collaborate seamlessly and reap the benefits of automation.

The company’s efforts to determine transparent and objective metrics to measure performance go a long way towards achieving this. 

Disclosure: This article was sponsored by our Enterprise Blockchain partner, LTO Network.

Share this article