[Music]
hey yo
good evening viewers of the chico army
and any new viewer who has decided to
tune in for the very first time
now could you kindly go to your fridge
and grab a beer or
spark a doobie and then relax because
it's time
for crypto and of course a cold one
today's featured beer is vasasur brewing
companies la
yuma dark lager so let's give it a taste
hey now hey
it's pretty good actually for a dark
lager not bad
it's made here in miami too so if you
live here check it out
so businesses across the globe rely on
processes and workflows to get their
service or product to their customers in
the most cost efficient and timely
manner
with the rise of computers and
technology many of these processes have
become digitized and automated
yet organizations are still struggling
to tap into the benefits
of inter-organizational processes mainly
due to lack of trust between two
differing organizations
then bitcoin and blockchain technology
came along which provided distribution
and cryptography to provide a system
that does not rely on trust
of one another but relies on the
protocol for trust
now here we are in 2019 with even more
advancements in blockchain technology
and technology alone
and businesses and workflows are still
siloed within organizations
resulting in wasted time money and
effort for these organizations
enter lto network and their blockchain
solution for decentralized workflows
they aim to enhance business to business
collaboration by enabling business
processes
or legal agreements to be automated via
live contracts
the company has been kind enough to
sponsor this video and the chico channel
the details of their agreement can be
found in the description of this video
right away let's do what chico does best
and break down the tech
included with the lpo network lto splits
the functionality of their platform into
two main layers let's begin with
layer two layer two consists of ad hoc
permissionless
private chains and each of these private
chains contain their own
workflow logic or a live contract live
contracts are similar to smart contracts
as they both define and solidify logic
that can be applied in a trustless and
verifiable way
although smart contracts are
cryptographic boxes that contain a value
live contracts do not directly hold
value but describe how two parties
should interact
the intent is to resemble a traditional
paper contract with these live contracts
live contracts define the workflows as
extended finite state machines which
make visualizing the workflow possible
through
flowcharts this makes the logic in the
live contract
understandable and readable for both
humans and machines
so imagine you had two different parties
from two different organizations
interacting with a live contract in
order to determine the state of the
finite state machines the responses from
each of these need processed in a given
order
inserting an event removing an event or
changing the order event
might result in a radically different
state of the contract
this is where event chains come into
play the event chain works like an
ad-hoc private blockchain
each response from a party is wrapped in
an event which can be viewed as a block
with a single action
the sequence of these events form a hash
chain that is shared between the parties
to ensure nobody can falsify or forge
events of others
each event is signed using elliptical
curve signatures from each party
this event chain is a private chain that
is only shared between the nodes of the
parties involved
nodes are not aware of event chains they
are not a part of you can think of these
event chains
almost like a side chain but unlike side
chains they are isolated
other event chains have no effect on
other event chains
leading to mass scalability as a result
of this design
guaranteeing the no tampering and an
immutable private chain
in itself is hard this is why they
designed the main functionality in two
layers
here's where the public lto chain comes
into play and it can be considered layer
one
this is a global blockchain that is
permissionless and
public and built for the specific use
case of supporting live contracts and
event chains
now the private layer is for data
sharing process automation
and collaboration between differing
organizations
this public layer acts as a security and
settlement layer
think of it like an immutable digital
notary for hashes of events on the
private change
this is called anchoring in which every
event of the event chain is anchored
onto the lto global blockchain
to create proof of existence for a
series of events in a live contract
to support the contracts and chains on
top lto has forked the waves blockchain
as a basis because it includes the ng
protocol which was originally made to
improve scalability of bitcoin
ng reduces latency and has proven in
stress tests
with waves to be able to handle 1000
transactions per second
making it an ideal blockchain for lto
unlike waves which uses least proof of
stake to pick its block generators
block generators are chosen by least
proof of importance consensus algorithm
the consensus acts like least proof of
stake where the chance of being selected
to generate blocks is based on the
amount of tokens you hold or stake
but it also takes into account usage of
the network by a node
more involved nodes get a higher chance
while inactive nodes get less of a
chance
this consensus creates a unique token
economy in which multiple diverse
participants
can benefit from the network you have
integrators and partners who are the
large stakers in the network who run a
node for a chance to generate blocks
then you have clients of the network who
are using the event chains and live
contracts
which incidentally means they are
running a node
then you have the passive stakers who
stake their coins through a lease
finally you have the non-active holders
which are the key to liquidity in the
network
so speaking of nodes the lto nodes are
split into several services
that make the functionality of the
platform happen these can be considered
layers too
the first layer is the ui layer which
lets users easily develop and debug live
contracts with two front-end
applications including a chain viewer
and a
live contract playground the next layer
is the application layer and this
contains all the services that handle
actions triggered by events from the
event chain
the next layer is the private chain
layer which decouples the node to ensure
a stable system
even the case of bad connectivity or
high load
the final layer is the public chain
layer which manages the public chain
services lto is no joke and the product
is built
right now this includes a free community
node in which anyone can get and
download and start managing processes
and anchoring on their global public
blockchain
and a licensed enterprise node which
includes more services
also they have a functioning playground
for live contracts which users can begin
creating and testing their own contracts
lto is targeting large enterprises
governments and multinationals as users
of their platform
they were already contracted by the
dutch government to automate inspection
authorities tasks related to waste
transportation
with the company sign request they were
able to notarize digital documents with
proof of existence
and with cms law they created a fully
decentralized commercial rental
agreement
they will gain more clients too because
their platform adheres to the european
general data protection regulation which
most blockchains
do not lto network will be entering into
a limited crowd sale that will only last
three days from today january 14th to
wednesday january 16th
here's what's interesting about their
sale they have included an
economic system to discourage the
dumping of tokens by large vcs and
private investors
they have two tokens participants of the
crowdsale will be given erc
20 tokens which will have instant
liquidity on exchanges
any other participant the team seed
round investors private sale advisors
they all get mainnet tokens which will
not have instant liquidity
lto adopts a bridge mechanism between
the erc20 and mainnet tokens
to go from one to the other you need to
pay a bridge toll
the troll toll takes its toll to go from
erc
20 to mainnet there is a standard 100
lto token fee
now the other way around if you want to
go from mainnet to instant liquidity erc
20
you need to pay a fee which diminishes
over time
on day one the fee is 55
ouch after 30 days it decreases to 33
and so on down the line this was done to
prevent the private and seed round
investors from dumping their tokens on
the crowdsale participants
making things fair for all if you would
like to get involved with lto
first you need to sign up on the
community platform link is in the
description
then you need to pass the kyc on the
platform there are two types
simple kyc with a 40 ethereum personal
cap and a stringent kyc
with no personal cap once passed you are
good to go and you just need to send the
f to the required smart contract address
to be provided on the community platform
as well as the lto network main website
well viewers this project has a unique
approach in making a fairer crowd sale
which is admirable in the face of what
happened in 2017 and 2018 with icos
combine this with their already built
out platform and product with
major use cases and you have a winner of
a project
cheers viewers and i'll see you next
time
[Music]
you