Midgard Research ICO Review: LTO Network

PROBLEM & SOLUTION

LTO Network’s infrastructure allows different parties, with competing for economic and/or political interests, to work within the same processes without the need to trust one another or a third party. To facilitate this, LTO Network has developed Live Contracts. Similar to a Smart Contract, a Live Contract provides a dynamic method for defining logic on the blockchain. However, the purpose of a Live Contract is not just to determine the state of a process, but to actively instruct humans and computers about the steps it contains.

In other words, a Live Contract is a workflow. A workflow is a sequence of related steps or processes that are necessary to complete a particular task. Think of it this way: a workflow has rules, where a certain action triggers another action, and so on.

A workflow is essentially the general template of a business process. For example, consider the workflow of a simple lease agreement approval, in which a document gets (1) drafted, (2) approved and (3) signed. A process is the specific instance of this workflow, so, for example, the lease agreement between parties A and B, which was drafted by an employee of B, approved by the CEO of B, and signed by both parties.

A workflow always contains certain logic: the rules mentioned before. Take for example the rule that signing can only come after approval, or that a rejection instead of approval would lead to a re-draft of the agreement.

Workflow + workflow rules = Live Contract

Essentially, LTO Network handles inter-party Business Process Management on the blockchain. Live Contracts can be applied in a broad spectrum of areas, for example in a supply chain, insurance, healthcare, and KYC procedures. Moreover, the system can be used for legal contracts like lease agreements and NDA contracts. Other use cases can be found here.


MVP

LTO Network has released its MVP on the website – https://playground.legalthings.one/

They will launch their mainnet since the crowdsale starts.

LTO Network has publicly available GitHub – https://github.com/legalthings/lto


ROADMAP

According to the roadmap, LTO Network’s journey began in 2014 as LegalThings. LegalThings is a platform to create, share and sign contracts in a digital way. In 2017 they experimented with Ethereum Smart Contracts and found out that they could only be used for self-enforcing agreements. Inherent constraints make them unusable for legally binding contracts. Instead, LegalThings found a much better solution in using their FSM (Finite State Machine) in combination with the blockchain.

Crowdsale and Mainnet release dates: January 14-16

In 2019 they are planning to start migrating existing clients to decentralized workflows, upgrade their product and expand IoT sector.


TEAM & ADVISORS

LTO Network team consists of 16 people, mostly from LTO’s parent companies Firm24 and LegalThings. Highlights on key team members:

RICK SCHMITZ – CEO
He worked as a Private Equity and M&A Tax lawyer at PwC (2 years) and Deloitte (3 years). Rick is also the founder of Firm24 and LegalThings.

ARNOLD DANIELS –  Lead Architect
He has a great experience working more than 20 years as a software engineer in Cloud9, ProActive Software. Arnold is the founder of Helder Hosting, Dutch shared hosting provider.

MARTIJN MIGCHELSEN – CFO & COO
He worked as a Manager for Corporate Finance at PwC for 7 years. Martin is also the Co-Founder of Firm24.

SVEN STAM – CTO
Sven has 15+ years of experience. He holds a masters degree in Artificial Intelligence with a specialization in Distributed Systems.

MARTIJN BROERSMA – VP Operations
Martijn previously worked as a lawyer at Firm24. He is specialized in automating complex (legal) structures and workflows and oversees LegalThings’ daily operations.

IVAN GOLOVKO – Strategy & Investor Relations
Ivan is also an advisor to VITE.
He is former CMO of ICODrops.

YEVHEN HORBACHOV – Lead Frontend Developer
Yevhen has over 15 years of development experience in which he led the front end team of the European Patent Office, he is currently in charge of the LegalThings frontend development.


LTO Network has experienced and notable advisors:

Mike Egorov, CTO of NuCypher with a Ph.D. in Physics, previously working as a Senior Software Engineer at LinkedIn..

Sandor Klein, the Vice President of International Sales at Docker. He previously held a management position at CA Technologies, EnterpriseDB, and RedHat.

Pedro Irujo, an advisor to CEMEX Ventures, having previous experience in Vodafone and PwC.

Femke Stroucken, a partner at an international legal firm CMS.


PARTNERSHIPS

LTO Network has notable partnerships with ICODrops, TorqueVentures, BitMax, NuCypher, POA Network, Waves, CPChain and much more.

In the case of adoption and blockchain usage, LTO Network has a large number of clients and partners.


TOKENOMICS

LTO Network tokenomics looks strong and reasonable. The hardcap amount was reduced to $5.2m for 42% tokens allocated for sale. They have already raised $1.4m from private investors.

LTO Network has The Bridge Troll. Private investors will receive Mainnet tokens that are not tradable on exchanges and crowdsale participants will receive ERC-20 tokens that are tradable on exchanges.
If private-sale and seed investors want to sell their mainnet tokens, they must convert them into ERC-20. But fees for conversation starts at 55% and will decrease to 0% in 6 months. It is a good mechanism that can prevent from a strong dump.

The crowdsale will proceed through Proportional Token Allocation model as Fusion had. You can read more about it here –> https://medium.com/ltonetwork/lto-crowd-sale-model-4c0dab604a3e


VERDICT: 8 out of 10

Overall, we like the idea and tokenomics of the project. Hardcap is extremely low and reasonable: $5.2m for 42% of tokens that are divided between Private ($1.4m has already raised) and Public ($3.8m) sales.

LTO Network has publicly available testnet on their website and has already launched several successful pilots with several real companies. Mainnet to be launched together with the public sale in January.

They have notable partnerships with NuCypher, POA Network, Waves, CPChain. Moreover, they get mass awareness from the leading figures in the industry: ICODrops, MoNoico, Wolf Crypto, and we expect even more. All mentioned above will bring a lot of hype to the project and increase its investment potential.

The team is solid and experienced both in development and legal fields. Their Advisors and Partnerships will bring more clients to LTO Network in future.

LTO Network will issue ERC20 tokens with their own blockchain tokens (LTO) during the public sale. They can be converted in both ways through the token bridge. LTO Networks’ crowd sale will be conducted through Proportional Token Allocation model (like Fusion had).

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Vladyslav Skakun
thecryptodiffer@gmail.com

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