AS LTO Network Masternode, we create blocks and store ‘transactions’ for LTO Network on their blockchain with our VPS.
Since the day of the launch of LTO Network’s MainNet at 14 januari 2019, our LTO Network masternode is part of the blockchain.
Our node is located in Amsterdam in the Netherlands, close to LTO Network companies location.
We are running our node independently from LTO Network just like all other masternodes on their blockchain, except for one supernode, this one is owned by LTO Network.
Our node is running on a VPS using Ubuntu in our own datacenter.
What does the LTO Node do ?
Like every other node on the network, our node is processing blocks on the blockchain which are used to store data in. Every minute a new block is created on the blockchain by a node, in these blocks hash-keys are stored which are being generated by clients of LTO Network.
Besides processing blocks and storing hash-keys, masternodes also process other transactions on the network, like transfers of LTO coins to other wallets. For this work a node receives a fee. The fee for a transaction in a block which he generated is 1 LTO.
The node with the largest stake of LTO coins is allowed by the blockchain to create the most blocks, and therefore has the biggest chance to write transactions in these blocks.
A node is selected based on the number of coins in his own ‘hot’ wallet, but he can also lease coins from other wallets. If another wallet leases coins to a node’s hotwallet, the amount of coins which he leases and what he has in his hot wallet is what counts as his stake.
It is also possible that a node leases his coins from a coldwallet to his node’s hotwallet, it doesn’t make any difference for stake he has, it is just that a node can keep his coins in a wallet offline.
What is the purpose of LTO Network ?
So, how does this work ? Well, clients use the LTO Network for accountancy purposes. What they do is store digital document on a computer or network and extract a hash-key from that particular document.
A hash-key extracted from a file is always the same and unique, with a hash-key you can prove that a copy of a document is exactly the same as the original file. Also you can use it to prove a file hasn’t been changed since the hash-key was generated and stored.
To prove that a document is 100% genuine is very important in accountancy but also for legal documents and many other purposes could be thought of. By storing hash-keys with a timestamp on a blockchain, it is guaranteed that a file corresponding with that hash-key was saved somewhere at that particular time.
It is impossible to change a document with the original hash-key which was stored on LTO Network, so one can absolutely be certain that the file is 100% genuine.
With blockchain technology, LTO Network is able to save customers on cost for storing 100% genuine data. This is how LTO Network creates value for their customers.