Lition, “public-private blockchain with the delete information created for commercial products” and represents a decentralized platform for buying energy serves 700 customers in 12 cities of Germany.
Already having the license for implementation of activities for the supply of energy in the country, the startup works with clients from a number of German cities, including large-scale Munich, Berlin and Hamburg. According to information provided on the official website Lition, the developers managed to create a decentralised energy market that connects consumers directly with suppliers of energy.
Currently, more than 700 German homes use blockchain platform Lition to buy energy. The company noted that the technology of distributed registry (DLT) allows you to “bypass optional intermediaries”, which makes it possible to reduce costs of consumers for the supply of the power supply.
The traditional method of energy distribution implies the interaction of a vendor that sells electric, solar or another type of energy, with the facilitator, who usually is a major international company and then sells energy to individual consumers.
Richard Lohwasser (Richard Lohwasser), Lition CEO, explained that international mediators do not usually give their customers enough options in regards to which energy products and packages they can buy. Large and centralized providers to create a monopoly that gives them the lion’s share of control over the process of distribution of energy.
In order to create an energy market focused on the interests of consumers, Lition is going to eliminate large companies from the supply chain, as created by the developers of “energy exchange connects consumers and producers directly. Manufacturers exhibit their energy to the exchange, and then consumers can buy it.”
“Usually the process of buying directly from manufacturers is intended to limit the choice of energy suppliers which are large corporations. We empower consumers with the exchange, whereby consumers can pay for the energy they want,” said Lauwasser possessing a doctorate in the field of business administration and computer science.
According to the position Lition, the removal of intermediaries allows users to save about 20% of the amount of their bills for electricity, and, on the other hand, brings to owners of power plants have 30% more income. This is despite the fact that Lition is mainly concerned with “green energy”, which is known to be more environmentally friendly but are usually costly.
Through the application Lition the user chooses what type of energy he wants to use. Currently, consumers can choose the energy of biomass, solar energy or wind energy, as well as directly supplier that you would prefer this energy to buy.
Further, consumers are paying Lition for the service in Euro. Purchase requisitions are automatically processed by a smart contract for Ethereum, which ensures timely delivery of energy usage, for which they paid.
“Blockchain technology Lition simplifies the process of buying energy directly from producers of green energy on any scale activities through the use of transparent smart contracts, which allow consumers to avoid the complexity of the processes established brokers distribution of energy”, — explained Lohwasser.
At the moment services Lition is only available in Germany, although, according to the CEO of the company, in future it is planned to expand the geography of business. Commenting on the problems faced by companies using the Ethereum network, has already become too congested and having problems in the area of scaling, Richard Lohwasser said:
“Ethereum is not the best system. It is very slow. To inform the consumer, he can buy energy or not, takes 20-30 seconds.”
He added, however, that other blackany have their drawbacks.
As for the possibility of using private blockchain CEO of the company, developing emphasized a decentralized approach, ironically: “You then may not have the blockchain”.
We will remind, about the beginning of the developments in the supply of solar energy directly to the consumer on the basis of the blockchain recently announced Japanese power company Kansai Electric Power Co.