Lition Ethereum Blockchain Project Now Delivers Power in 10 Different Cities, Totalling 700 Houses
A new Ethereum-based project called Lition is helping German citizens to find cheaper energy for their houses. Lition, which was launched earlier in 2018, is a licensed energy provider in Germany that has clients in 12 major cities of the country including Berlin, Hamburg and Munich.
The clients of the company now receive their electric energy from the decentralized energy market of the company instead of their normal sources. This technology was built on top of the Ethereum blockchain and it connects the consumers with energy providers that are able to solve their problems.
A total of more than 700 households in Germany are using the technology of the decentralized platform now to buy cheaper energy. The motto of the company is well known by blockchain enthusiasts: you cut the middlemen to save costs.
This company is focused on solving an important problem: the CEO of the company. Richard Lohwasser, has been focused on taking the multinational companies that work as intermediaries outside of the equation. According to him, the main problem is that the companies take too much power and influence over the users and they give them no choice.
By decentralizing the market, the company is able to give the choice back to the user and cutting out some company that only makes a kind of work that is simply not needed anymore. By connecting the energy producers and the consumers, they empower them and cut costs.
It’s all about cutting out the giants while letting the small players deal between themselves. The middlemen take a hefty cut out of the work and this process of taking them out, which can reduce up to 20% of the utility bills of the clients and increase their power plant revenue by 30% at the same time, so both sides win.
As the so-called “green energy” is often too expensive, the company believes that the secret can be to put more emphasis on letting the users have access to this technology in a more efficient way as this technology can often get more expensive than normal non-clean energy.
The Lition Ecosystem
As the user find the energy that he wants, he is able to use EUR to pay for the energy. The company uses Ethereum smart contracts to make the transactions. The contracts detect the payments and then send energy to the customers. The technology is basically very efficient as a way to simplify this whole process of buying the energy from users in Germany.
While the company has plans to take its business outside of the country, it is focused on providing the best possible services for users in Germany first as it solves some of the current issues with the platform.
Lohwasser has big goals for the future of the company but some problems with the Ethereum blockchain are currently haunting the company. Lohwasser has affirmed that Ethereum is not very good and that the technology is very lacking.
As much as he appreciates all the effort put into the company’s platform to create something that is open and permissionless, he affirms that users have faced several problems.
Ethereum, according to him, is simply very slow. It takes up to 20 or 30 seconds to simply tell a customer whether they can buy energy or not and the system still relies on mining, which is very energy sucking.
However, most of the other blockchain platforms are not very much better than Ethereum. Lohwasser affirms that all the platforms have drawbacks. This has led him to feel somewhat skeptical of all the blockchains.
This way, the company has united with SAP to create their own system which will be a hybrid blockchain focused on enterprises that will combine what they believe that are the plainly best aspects of the blockchain technology with smart contracts while being actually fast.
The company has also stressed that they created all of this without having to resource to Initial Coin Offerings (ICOs), which are often messy and are currently being somewhat discouraged in the industry.