The technology behind the LTO network consists of a new blockchain model that introduces a new type of contract that is called a 'Live Contract'. They are different from Ethereum's smart contract because they are not a server running code, but more mimics the workflow process model commonly used in large organizations. These specified processes also serve as a binding agreement, e.i, a contract. On the LTO platform, this translates to a Live contract - a structured, codified workflow model. 

Unlike in the case of Ethereum, where these contracts have to be written in a specialized programming language, Live contracts can be understood by both humans and computers.

They operate based on the extended finite machine logic, which means that there are predetermined logic of how two parties can interact and what happens if they don't. 

The LTO platform creates a separate private (event) chain for each Live contract, which is then after execution anchored on to the global (public) blockchain. This global blockchain serves to support the operations of Live contracts and notary transactions and is the immutable ledger of the event chains. 

This blockchain is from the NXT family and was built from the Waves platform fork. It doesn't require any script processing or transaction processing on the part of network nodes because it is based on core transaction types instead of variant input/output value. This reduces the block size and increases efficiency that benefits the notary transactions. Starting as a fork from Waves, the platform utilizes upgrades such as the NG protocol, which was initially suggested as a Bitcoin scaling solution, that achieved 1000 Tx/s in a public stress test on Waves.

Transaction Types that are:

• Anchor: used to verify transaction from the private blockchains,

• Issue a certificate: used to declare relationships between identities,

• Extend/revoke a certificate: used to extend or remove such a relationship,

• Transfer token: used to send tokens to another identity,

• Stake tokens: used to let a participant stake or lease tokens,

• Cancel staking: used to stop staking or leasing tokens,

• Set script transaction: used to configure smart accounts.

In order to generate blocks, the network uses a Leased-Proof-of-Stake (LPoS) consensus algorithm. Nodes that find blocks are rewarded with the fees of the transactions.

LTO network is built with 4 different layers: 

1. UI Layer: this consists of UI applications that interact with the application layer. There are two frontend applications that are enabling users to develop and fix Live contracts. Chain Viewer is for connecting to nodes and chain exploration. The second is the playground application, which develops live contract scenarios as a state diagram visualization. 

2. Application layer: contains all the services that handle actions triggered by events from the event chain. It has a web server that is a proxy between the frontend and the applications within the node and has two functions: to authenticate requests to the services and proxies all requests to the correct service. The other application is the workflow engine that performs the creation and execution of the Live contracts.

3. Private chain layer: takes care of the decoupling of the node. This ensures that the network is stable and runs uninterrupted via splitting the messages across the chains with multiple events but are merged back up again in the main chain through an anchor event. Three services manage these events: EventChain service - processes all incoming events, Event enqueue service - putting events in the event queue, Event dispatch service - picks up all the messages and distributes them to the Event Service. 

4. Public chain layer: manages the public chain service. It is the main chain in which all the events are merged through an anchor service. It mostly consists of transactions but will be extended to all data transactions. These hashes are to be collected daily and merged into a Merkle Tree. This enables the data to be removed from storage while maintaining the ability to verify whether the hash existed.

The fact that the LTO Network is being adopted is evident from the daily increase in transactions on the blockchain.

The project focuses on two ways. First, its external third-party building on the network and second existing product integration for the companies benefit. They have built several applications that expand on the LTO networks and utilize its functionalities to drive further network adoption via building useful tools for the network’s usage.

Currently, available products are: 

• FillTheDoc enables you to automate documents in any system and provides contract automation for professionals. It streamlines data from various sources into one or more documents and is for handling external data as well as generating forms and scripted templates. LTO Network will secure all the data by anchoring it on to the public chain. 

• Proofi is the application for digital signatures and provides unique digital signatures identifying yourself in online communications and preventing online fraud. Proofi will be integrated with other platforms and social media tools built on open standards with privacy and GDPR compliance by design.

• LetsFlow is a workflow engine for running processes on the blockchain. Similar to the Zapier application, it aims to bring integrations to the blockchain world and is envisioned as a platform for building centralized and decentralized workflows. 

• VIDT Validation Service is a service that detects any unlawful manipulation of any digital file. In order to make files verifiable, they must be validated. V-ID’s validation process involves extracting the fingerprints of files and saving them in the blockchain. If a file is changed with just one byte, pixel, character or anything else, the fingerprint is changed and V-ID will detect it 100%.

Token usecase

LTO token is the LTO network's native token and serves as a utility token for the network's usage. It has three ways it can use to sustain the network: 

1. Gas fees for anchoring data and transfering value over the network

2. Staking it according to the Leased-Proof-of-Stake model

3. Governance token for on-chain voting. 

Product usecase

LTO Network has presented a large variety of real-world use cases that are already implemented in some segments. Here is a selection of the use cases.

• Inspection reports on Blockchain (Capptions)

Providing immutable evidence to data entries and the creation of inspection reports on vital locations like airports, oil terminals, and dangerous goods.

• Digital Signatures on Blockchain (SignRequest) 

Providing assurance that document contents have not been tampered with and providing proof of the specific date and time a document was signed.

• Notary procedures on Blockchain (Firm24) 

Notary procedures heavily rely on paper-based processes. LTO Network makes incorporation procedures more efficient by sharing data efficiently and securely.

• Artwork Authenticity on Blockchain (V-ID) 

By validating works of art via blockchain, objects are better protected, and the authenticity can be established easier and faster.

• Environment data on Blockchain (IBM)

Digitisation is key to drive the sustainability transformation forward. Data insights help us better understand our true impact on the environment.

• Certificates on Blockchain (NEN) 

NeN introduced a new way to validate certificates. Instead of using regulators to do random checks, everyone with a smartphone can validate a certificate.

• Files Authentication Manager for European Municipality

A Blockchain-based application for signing and verifying documents has been deployed for the first time to a European Municipality: the City of Argos-Mycenae. 

Follow this Link to see more use-cases.