INTRODUCTION
We had a fantastic AMA session with Rick Schmitz, CEO of LTO Network, in the Benelux Crypto Community.
In this AMA, Rick shares insights about the evolution of LTO Network, how it has grown from securing and anchoring data for corporate clients to the multi-faceted solution provider it is today, offering technologies like Ownables, Proofi and Land Registration Software, along with a groundbreaking concept for tokenizing Real World Assets (RWAs).
Let’s dive in and learn more about LTO Network’s vision for the future!
PHASE 1: QUESTIONS AND RESPONSES FROM THE BENELUX CRYPTO COMMUNITY (BCC) ADMIN
Q: Can you introduce yourself and briefly tell us what LTO Network is?
I’m Rick Schmitz, CEO of LTO Network since 2017. We started with simple anchoring of data on-chain for corporate clients and built it into a multi-solution layer 1. I have a background as a tax lawyer at PWC and Deloitte and LTO Network is the love of my life.
Q: Great! Can you tell us why someone should invest in LTO? What is special about LTO?
LTO focuses on long-term goals. In order to see where the market is going, we look 3 years ahead. Based on those trends we develop solutions that are suitable for the real world. We always take into account regulations and corporate usability. This is why we have been around for 8 years and survived all bears. Our strategy to look beyond the hype is what's keeping us relevant. Our latest solution, Ownables is a great example of that.
Q: Is it possible to explain Ownables a bit for the beginners among us?
Yeah. So, an Ownable is a digital asset that you truly hold yourself. No platform to manage or store that for you. It's the most secure and true digital ownership you can get. Think about it like a "bearer share". This is for people who know how shares in companies worked back in the day. The one that possesses the share is the owner, no questions asked.
Q: Is LTO a market leader regarding Ownables?
We are definitely tapping into this niche. There are of course other parties that have similar solutions but we are able to keep everything cost-efficient (despite big file sizes), manage the assets in the upcoming LTO wallet, and use the technology for a variety of use cases: think collectibles in art, valuables, shares, tokenized VC tickets. All become "bearer shares" in the respective asset.
Q: However, I know back in the day, LTO Network was fully focused on identity management. Is this something that will be combined with the rest of the key targets from LTO Network?
Yeah, that is of crucial importance. Web3 needs a way of seamless identification. That can be a human user interacting on-chain, or an AI agent or oracle. Robots and humans need an on-chain identity that works seamlessly on-chain and cross-chain.
LTO Network has its solution, Proofi (see the LTO network website). I expect so much more traction in the crypto industry on this. We are in talks with all the major Web2 identity providers, and they all agree that verifiable credentials (Web3 identity) are the way to go. Everyone is done with KYC forms and showing passports and bank statements every time you onboard in the Web2 or Web3 space. That's going to change in the next years.
Digital identity wallets for companies and humans will be the norm within 5 years.
BCC Admin: And that's where LTO Network jumps in.
We provide the infrastructure for these verifiable credentials and build an interface with Proofi. It is going to change how we interact with each other.
Q: Great explanation and good to follow. What is the revenue model of LTO? How does LTO Network ensure that it continues to maintain sufficient funds for the upcoming years?
We have projects that bring in revenue and besides that, we have companies that want us to manage their on-chain activity and outsource their transactions to us. We generate income from that. We have enough capital to go for years.
BCC Admin: That's great! I think a lot of people want to hear that because, as you know, in crypto nothing is for sure.
We have a tight CFO that doesn't splurge.
Q: What about upcoming news, sneak peeks, releases, etc? What is coming for LTO?
The biggest upcoming date is December 5. We worked for a long time on our own LTO wallet. With it, you can easily mint, create, and trade your Ownables. That was so much work...Not per se building the wallet, but the number of audits is unreal. A wallet is the top security risk, so you want to make sure it's unhackable.
But we are done with all of that. Just final styling and deploying it into the app stores. I believe that every company and its shareholders will have their shares in the LTO wallet. Self-empowerment is key. I honestly think IPOs in the old system will become redundant at some point. A way cheaper, more global, and less regulated solution is tapping into the secondary market through the tokenization of shares. So that's where my bets are on. Tokenization of Real World Assets (RWAs), especially shares, and derivatives on PE/VC funds.
BCC Admin: That's great news! And also great to hear the great care about this project!
PHASE 2: QUESTIONS ASKED BEFORE THE AMA
Q: How does LTO Network's hybrid blockchain, GDPR compliance, and decentralized identity help companies comply with regulations while improving efficiency? And can you name some of your current partners and potential new users?
The old days are gone. Everyone in Europe will need to comply with MiCA eventually. If you want to do business with anyone using a crypto wallet, the wallet will need to be KYC’d.
We have a wallet coming out in a few weeks that can store your RWAs, and in our roadmap is the ability for the wallet to include identity and self-KYC features. A one-stop shop for your decentralized self. We have partnerships with the UN and Scantrust, as well as with two governments.
Q: The Ownables feature on LTO Network is an innovative concept. How do Ownables enable users to securely own and transfer rights of digital or physical assets, and what are some potential use cases and potential sectors for this feature?
Ownables are truly decentralized digital assets that you own. By default they are private. You can’t see what’s inside an Ownable unless you are the owner. But you can prove its provenance through immutable records throughout the life of the Owanble.
Ownables can contain legal agreements and other assets, which makes connecting to the real world more effective than things like non-fungible tokens. This makes them significantly more useful.
We will be launching our Universal Wallet in the near future and you can play and interact with Ownables yourself. It will also be possible to create Ownables from inside the wallet. The first interface will be very simple Ownables, but we will add more features to create very interesting Ownables with. Such as dynamic Ownables, etc.
We see Ownables being used for anything from storing RWAs on-chain, to digital collectibles, as well as media and art.
Q: Can you provide examples of real-world applications and partnerships that have been developed on the LTO Network? How has the partnership helped both parties grow?
We have many projects that live on the LTO Network. For example, our Legalthings service was purchased by Kate Innovations. They are a large real estate company and this suite is used to make contract workflows much more smooth and robust.
We also have a land registry software which is being used behind closed doors by an African country right now and we are in talks with two more countries.
In the coming year, we will announce usage partners for our Proofi technology, which will help offer KYC for Web3 in a privacy-friendly way as well as expand on our partnership with Scantrust’s technologies. Scantrust works with everyone from LVMH to Dupont and Unilever and they offer LTO Network as a blockchain solution.
Q: LTO Network has strongly positioned itself as a hybrid blockchain for business applications... There are many developments in the field of AI and increasing automation within business processes. I think there are interesting opportunities for integrating blockchain with AI-driven smart contracts and automated workflows.
My question is: Does LTO see a role in this combination? If so, what steps will you/do you want to take towards this integration?
In general, AI and blockchain seem to not be very compatible, but I think that the decentralized workflow technology of LTO is ideal for AI systems from various vendors to collaborate. This will solve issues of trust between AIs.
I like this idea. I'll discuss it with my team.
Q: Many blockchain projects have made big promises about the impact of their technologies, but have often been limited to niche applications without widespread adoption. What makes Ownables different? How can you concretely demonstrate that Ownables are not just a short-lived hype, but a viable solution with long-lasting, tangible value for companies and end users?
Nobody knows the future. Like any good technology, if it fits the needs of the world and we get it in front of the right people, then it will take off. It's as simple as that. We know how to showcase our tech really effectively.
PHASE 3: PUBLIC AMA
Q: How does Proofi ensure KYC and AML compliance for Web3 wallets while maintaining user privacy?
It will be the credentials that are being stored and managed by trusted third parties. Proofi merely confirms that the statement that is made (and needed for the action in Web3) is verified. So, let's say you want to buy beer… You state that you are 18 years old. If you connect your bank to Proofi, it will just confirm if the statement that you are over 18 is correct... Without sharing your date of birth.
Q: LTO Network’s Ownables technology allows Real World Assets to be tokenized. What specific technical features or mechanisms differentiate Ownables from other tokenization models?
It's a technical difference where you are storing all the data inside of the Ownable. Not just a reference to the data. That is the main difference. True ownership inside of the Ownable (basically, an Ownable is a smart contract).
Q: How does Proof-of-Humanity on LTO Network differentiate between legitimate human users and advanced bot systems? What level of reliability has this feature achieved, and what are the fallback measures if it fails to detect sophisticated bots?
That’s simple. Proofi just connects to trusted third parties. For example banks, municipality databases, etc. Bots don't have that.
Q: In the event of major disruptions (such as regulatory challenges or a shift in market trends), how would LTO Network pivot or adjust its current focus on RWAs, privacy, and identity solutions?
We will always make sure we are compliant with regulations. We are frontrunners in that.
Q: Hi Rick, what is in all the years within crypto the achievement where you are the most proud of? And what was your most valuable lesson? Thanks :)
Building LTO Network with a lean team and a kick-ass loyal community for more than 7 years.
Q: Is it a goal for LTO to have a higher token price? Will companies that use LTO Network have to take a lot of LTO off the market, resulting in a higher price?
Yes, correct... More demand means a higher price... Let's make sure all companies will be on LTO.
Q:At which big events can we expect to see you?
NFT Paris in February 2025.
Q: How does LTO Network position itself against other privacy-focused blockchains like Secret Network or Monero? What core differentiators make it the ideal choice for businesses?
I think our connections with real businesses do. My other company, Firm24.com, is part of a 400 million rev group that is fully identity-focused. We have access to that where others don't.
Q: Can you explain how LTO Network's hybrid blockchain architecture balances public transparency with private data security?
That could be a very long answer... But in short: The data that should be private is communicated on a private layer and only to the parties that should have access. The public chain makes sure everything is tamper-proof.
Q: As Web3 continues to evolve, what role does LTO Network see itself playing in the broader Web3 and DeFi ecosystem over the next five years?
We are full in on RWA... That involves a lot of DeFi elements.
Q: Can you elaborate on the data privacy features of LTO Network, and how they differ from other privacy-focused blockchains?
Yeah, we are hybrid. Fully private doesn't work. Fully public also does not (at least for business-sensitive data). And that's our bread and butter.
Q: What types of assets are most commonly tokenized using LTO Network’s Ownables, and what advantages does tokenization provide to asset holders?
Art, collectibles like watches, company stocks, private equity tickets, VC-fund tickets, all hard to get into stuff.
Q: How can LTO Network’s technology help businesses and governments transition towards digital transformation and increased regulatory compliance?
this is something for consultants and integrators that want to use blockchain...We are not so much educators anymore.
Q: Would it be possible for LTO to create a platform for voting in elections in combination with Proofi and Digital IDs?
Yes, I would love to see this... It will happen 100%. I hope it will be on LTO and that everyone can cast their vote with an Ownable through our Layer 1.
Q: What happened with the cooperation with the Dutch government?
Pilots sometimes stay in that phase.
Q: You have a connection with Rico Verhoeven. Would it be interesting to sponsor him during Glory kickboxing events to increase brand awareness even further?
I am good friends with him.
Q: What are the key features of LTO Network's RWA ecosystem that make it robust and capable of handling the entire lifecycle of assets?
Identity / wallet / KYC / custodian service / public notary and a platform to trade / exchange.
CLOSING WORDS
A big thank you to everyone who participated in this AMA session! LTO Network keeps pushing the boundaries of blockchain innovation. Our technology is reshaping how businesses and individuals interact with blockchain. As LTO continues to grow and evolve, we expect more exciting developments to come into the limelight. Stay tuned!
About LTO Network
LTO Network is a privacy-aware Layer-1 blockchain for Real World Assets, Data Security, and Identity Solutions.
Our platform is designed for business process efficiency and security. It combines a public layer for transparency and a private layer for data security, ensuring GDPR and MiCA compliance. This dual-layer approach makes it ideal for enterprises requiring data privacy and regulatory adherence.
LTO Network also offers tokenization of RWAs through their Ownables technology, enabling assets to be brought on-chain and allowing them to interact with the world of DeFi and Web3.
LTO Network's KYC services help maintain compliance with anti-money laundering laws and offer Proof-of-Humanity services to protect Web3 and DeFi platforms from bots.
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