2021-07-11 15:59:00
Weekend read – Week 27 – LTO Network
This week’s weekend read is about LTO Network, a hybrid blockchain for securing, verifying, and exchanging significant and critical business information. LTO Network is focusing on the B2B market with an innovative and disruptive product that is actively getting integrated by industry leaders, intergovernmental institutions, and governments.
What problem does LTO solve?
LTO Network is a decentralized, blockchain infrastructure that allows companies, governments, and intragovernmental institutions to exchange important business information by digital verification and -credentials. The main issue with the existing solutions that allow businesses to exchange critical information is that they are either highly expensive or extremely flawed.
Land registration
The national land registration systems are one example that is experiencing issues with the exchange of correct information between multiple parties, which is not being tampered with through time. The Dutch land registration goes back to the 1600s, while multiple African countries do not have a working land registration system. Matter of fact, in many African countries such as DR Congo, Angola, and Kenia the land registration system is flawed and being exploited. The probability of land registration registers being tampered with through time, or being exploited because of an inadequate system is extremely high.
Compliance
The financial industry is experiencing imminent issues with the exchange of critical information while being compliant with the GDPR framework. To put the problem in perspective, the current workflow of banks by onboarding new clients is that the clients are exchanging their personal information mostly by email, especially through the COVID19 period.
The whole compliance industry, that banks are forced to implement because of the FATF guidelines, uses the personal data of clients to stay compliant to the AML/FT guidelines of the FATF. In other words, your passport and other personal information are up to the grabs by any compliance bank employee. There are hardly any built-in borders that deny compliance bank employees access to a specific client.
The LTO Network solution
LTO Network utilizes blockchain technology to exchange and store critical information while making it accessible to the right parties while being GDPR compliant. The LTO network project has shown in Afghanistan, Kabul, that their approach simply works and is efficient to use. The setup time of such a system is considerably lower than the traditional system because LTO Network removes multiple intermediaries such as banks and notaries. Besides that, the overall system of land registration system of LTO Network is much more efficient and transparent than traditional systems. The LTO Network tech allows it to be efficient, while the underlying blockchain technology adds transparency to the mix.
The LTO Network solution for the compliance industry is fairly simple. The government issues passports to its citizens, therefore it is the root authority. Banks need to verify if passports are valid and legitimate to be compliant with the AML guidelines of the FATF, and local law. The current state of the GDPR doesn’t allow banks to exchange information about clients, only in special cases (e.g. national emergency, etc.). The LTO Network solution will allow banks to share information by their blockchain solution, just by letting banks interact with each other by letting them verifying their data. While verifying data, there is no information exchanged between the nodes, however, nodes are still getting information by just verifying their data with their trust network. Therefore, banks can for example verify certain personal data within their trust network without actually sharing it.
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